Cash Flow Scoop definition
Cash Flow Scoop. On an annual basis, WFBC will require that 25% of Excess Cash Flow be used to pay down the overadvance facility. Excess Cash Flow will be defined as after tax net income plus depreciation and amortization, plus deferred income taxes and other non-cash items, minus capital expenditures, minus contractual amortization of long-term debt including capitalized leases and the Overadvance Term Facility as calculated using the audited financial statements. Lockbox Requirement: Borrower will be required to remit its receivable collections to a lockbox located at a bank acceptable to WFBC. Proceeds of the lockbox, including cash receipts and collections received outside of the lockbox, must be deposited daily into a collateral account owned by WFBC. After allowing one day for collection, the funds will be transferred to WFBC for application to the Revolving Credit Facility on a next day basis. Deposits for Southeastern Staffing, Inc. will be excluded from this requirement, but WFBC will retain the right to make this a requirement in its sole discretion.