Revolving credit


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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.

Revolving credit.

A revolving credit arrangement allows you to borrow up to your credit limit without having to reapply each time you need cash. As you repay the money you have borrowed, it is available to be borrowed again.

For example, if you have a credit card with a credit limit of $1,500 and you make a purchase of $400, the amount of credit you have available is $1,100. But when you repay the $400, your credit limit goes back to $1,500 -- assuming you haven't charged anything else on the card.

At any given time, your balance due may fluctuate from zero to the maximum credit limit. If you don't use the credit line in any billing cycle, no fees apply in most cases. But if you have a balance due and don't repay the full amount, finance charges are added to your next bill.

Some revolving credit arrangements, such as a home equity line of credit, may have a predetermined end date, but the majority are open-ended as long as you make at least the minimum required payment on time.

References in periodicals archive ?
30% commitment fee on any unused amounts under the revolving credit facility will be made and as of 11 August 2017, the company had USD60m borrowed on the term loan and USD10m on the revolving credit facility.
The company's unsecured revolving credit facility has a maturity date of 18 September 2018 and includes a one year extension option.
The 2011 Revolving Credit Facility continues to be guaranteed and secured by the same collateral package and guarantees that secured the prior revolving credit facility, including being supported by, among other things, guarantees from Revlon, Inc.
Finally, immediately after the company closure of the refinancing, it has USD346m of outstanding borrowings under the new credit facility and the available borrowing capacity under the new revolving credit facility, net of outstanding letters of credit, is about USD454m, it mentioned.
The company stated that the 2011 revolving credit facility continues to be guaranteed and secured by the same collateral package and guarantees that secured the prior revolving credit facility, including being supported by, among other things, guarantees from Revlon Inc and, subject to certain limited exceptions, RCPC's domestic subsidiaries.
23, 2006, the company replaced its existing $800 million unsecured revolving credit facility with an amended $800 million secured revolving credit facility.
The amended floor plan facility and new revolving credit facility provide FreedomRoads with the flexibility and capacity to continue to execute our operating strategy," said Roger Nuttall, Executive Vice President and Chief Financial Officer of FreedomRoads.
The revolving credit facility is initially scheduled to mature on May 1, 2009.
In connection with this tender offer and consent solicitation, the Company entered into a new senior secured credit facility, consisting of a five-year, $150 million revolving credit facility and a six-year, $75 million term loan with J.
The new facility, which includes more favorable pricing and flexibility, is a five-year $335 million Term Loan A and a five-year $500 million revolving credit facility.
s (TDI) senior secured revolving credit facility and senior secured first lien term loan upon closing.
The new facilities consist of a seven-year $900 million term loan facility, which was fully drawn at closing, and a five-year $200 million revolving credit facility, which was undrawn at closing.