credit line


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Line of Credit

An agreement between a bank and a company or an individual to provide a certain amount in loans on demand from the borrower. The borrower is under no obligation to actually take out a loan at any particular time, but may take part of the funds at any time over a period of several years. This agreement is fairly common in situations in which a business must make payroll but does not always have the operating income to do so, especially when its operating income is seasonal or otherwise varies from month to month. It is also called open-end credit or a revolving line of credit. See also: Credit Card.

credit line

Credit line.

A credit line, or line of credit, is a revolving credit agreement that allows you to write checks or make cash withdrawals of amounts up to your credit limit.

When you use the credit -- sometimes called accessing the line -- you owe interest on the amount you borrow. But when that amount has been repaid you can borrow it again.

A home equity line of credit (HELOC) is secured by your home, but other credit lines, such as an overdraft arrangement linked to your checking account, are unsecured. In general, the interest rate on a secured credit line is less than the rate on an unsecured line.

References in periodicals archive ?
Through the Macedonian Bank for Development Promotion, domestic firms have at their disposal several credit lines of about 50 million euros a year with a subsidized interest rate for purchasing equipment and machinery.
Kcell on 23 September, secured an additional tranche of KZT 800 million under the above credit line.
The earlier credit line was used to purchase hundreds of millions of dollars of much-needed Iranian consumer products, from frozen chicken and sugar to electrical goods.
As the issuance of the Credit Line Warrants and the Note Extension Warrants represents a number of securities of Cardero being made issuable that exceeds 25% of the Company's present issued capital, and as the exercise price may represent a discount to the market price of the common shares at the time of issuance, shareholder approval to both the issuance, and the exercise price, is required under the TSX rules.
An EU executive said, 'The Commission concluded that the state aid implied by the provision of the credit line is proportionate and commensurate with the need to ensure sufficient liquidity in the banking system in the particular circumstances.
The favorable conditions of the MBDP credit line will have a direct effect on the investments of Macedonian farmers into machinery, equipment and modern facilities, but also purchase of larger quantities and safer distribution, swift payment, as well as securing a price trend without any oscillations", stressed Dimovski.
1a] The proportions of students age of 18 to 21 and above 21 rejecting the additional credit line of $500 is significantly higher than zero.
the form of credit line up the limit of 500,000,000 PLN, entered into on 5
The withdrawal of the credit line creates a new obstacle for the airline as it struggles through an industry slump, reported Reuters.
surfaced when they chose to draw down bank credit lines because they couldn't raise money through the sale of short-term debt.
Only 42 percent of firms with fewer than two employees used a credit line, a loan, or a capital lease, including 16 percent that used a line of credit.
In general, NCB provides such credit lines to seasoned co-ops where at least 70 percent of the units are owner-occupied.

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