credit line

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Related to credit lines: Credit cards

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 ?
319 million euros of this credit line have so far been used by 1,583 small and medium enterprises, which have invested this money in just as many projects thus creating 6,441 jobs," said Finance Minister Zoran Stavreski.
The higher credit line rejection at $1,000 came primarily from one group: Those between 18 and 21 years of age increased their rejection rate for credit lines from 40.
The new credit line has been extended until December 2010 and would have a lower interest rate.
For firms older than nine, however, the use of credit lines, loans, and capital leases declines with the rise in age.
Decision strategies built using the Credit Line Optimization Starter Kit can be easily integrated into TRIAD, which is used to manage about two-thirds of credit card accounts worldwide.
According to the statistics of the MBDR, the Government used the first credit line of 100 million euros from the EIB for support of small businesses in 2009 and two years later the second credit line of 50 million euros was expressly used as well.
Earlier, the operator had decided on a reduction in interest rates under these credit lines to 8.
They would reintroduce reciprocal unsecured interbank credit lines for business with tenures of up to three months.
These credit lines include "personal homeowner credit lines," which are secured by a security interest filed against the borrower's home.
First, many creditors have aggressively promoted their credit lines plans with discounted finance rates and waivers or rebates of closing costs and fees.
Solutions financed through IBM Flexible Credit do not impact resellers' Tech Data credit lines, freeing those resources for additional purchases.
With this facility the total amount of revolving credit lines is US$ 5 billion, as we already have an existing US$ 3 billion line, which will mature in 2016.