overhead financing - Investment & Finance Definition
A lending program that is designed to help companies meet their monthly payroll expense when they have signed long-term contracts with customers who are billed on a monthly basis. Overhead financing may be provided by banks, but is often a product offered by specialty financing companies. To access overhead financing, a company submits an invoice for work that has been completed through a given time cycle. Advances are made to provide funds to coincide with the payroll periods. At the end of the month, when an invoice to the client is created, the overhead financing that has been provided is rolled into accounts receivable financing. That financing is usually converted into accounts receivable loans within 30 days.