line of credit
A "line of credit" offers flexible borrowing options, allowing individuals or businesses to access funds up to a set limit as needed.
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Definition
B2Finance
(technical)An arrangement allowing a borrower to access funds up to a predetermined limit and repay them over time, with the option to borrow again as needed.
Example
- She used her line of credit to cover unexpected medical expenses.
- Businesses often rely on a line of credit to manage cash flow fluctuations.
B2Banking
(technical)A loan facility from a bank that permits the borrower to withdraw funds up to a set limit and repay them in a flexible manner.
Example
- The bank offered him a line of credit with a favorable interest rate.
- He drew from his line of credit to finance the home renovation.
Similar
Terms that have similar or relatively close meanings to "line of credit":