An agreement by a bank to lend a specific amount to a borrower, and to allow...
A line of credit where the customer pays a commitment fee and can take and repay funds at will. It is usually used for operating purposes, fluctuating each month depending on revenues and expenditures.
A specified amount of credit that is readily available to a business from a bank for immediate borrowing as the need arises at a specified interest rate.
A type of credit facility. A term that can be confusing, with different banks using the term to describe different types of credit facilities. In some banks, "revolving line of credit" refers to a credit facility that permits the borrower to draw down and/or repay amounts up to a specified maximum at any time. Called a line of credit by other banks. In other banks, the name "revolving line of credit" is used to distinguish between "regular lines of credit," (situations in which the bank is not legally committed to make advances) and "revolving lines," (situations in which the bank is legally committed to make advances.) This usage is outdated, wrong, and might expose the bank to legal liability. Large banks, primarily, use the term to refer to a combination of a line of credit and a term loan. Typically it starts out as a line for a one-to-three year period, after which, on a previously determined date, the outstanding balance converts to an amortizing term loan.
A bank line of credit on which the customer pays a commitment fee and can take down and repay funds according to his needs. Normally the line involves a firm commitment from the bank for a period of several years.
A credit agreement (typically a credit card) that allows a customer to borrow against a pre-approved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due.
A type of open account credit offered by banks and other financial institutions that can be accessed by writing checks against demand deposit or specially designed credit line accounts.
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years.
An agreement between a lender and a borrower which enables a borrower to borrow a specific amount of money in repeated transactions once it has been repaid.
Most credit cards offer revolving credit--an agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been paid.
An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed again once it has been repaid. A home equity line of credit is a type of revolving credit.
A credit agreement that allows a consumer to borrow a set amount of money, then after repayment of any portion of that money, the consumer may borrow again up to the original set amount. A credit card is a form of revolving credit.
The amount of money your bank pre-approved for you to use in purchases or cash advances. After reaching your credit limit, you must reduce your outstanding balance before you can tap your line of credit again without incurring any penalties.
A line of credit extended to a borrower that is good for a stated period of time. The repayment amount will vary based on the outstanding balance. The principal balance is reusable once it is repaid. A home equity line of credit is a revolving line of credit.
allows you to borrow a certain amount, to repay some or all of that amount, and then borrow the same amount again. Credit cards offer revolving credit. If you choose not to pay off the full amount borrowed you will be charged interest on the unpaid amount.
An agreement between a lender and a borrower where the lender agrees to loan a specific amount to a borrower. Once the money is repaid, the borrower is allowed to borrow the amount again. Credit cards are an example of revolving credit.
An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.