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.

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References in periodicals archive ?

Its debt also includes the $200 million revolving credit facility.

TRUSERV, LENDER REACH DEAL ON CREDIT FACILITY

The company said this facility will be used by the company to refinance the existing EUR100m multicurrency revolving credit facility that was signed on 31 March 2011 and for general corporate purposes.

Nokian Tyres announces signing of EUR100m revolving credit facility

The company has received the revolving credit facility from East West Bank.

Maxwell Technologies receives USD25m revolving credit facility

This unsecured revolving credit facility raises the company's borrowing capacity to USD400m from the USD200m as well as provides an accordion feature allowing for an additional USD350m of capacity, subject to customary terms and conditions, resulting in a maximum borrowing capacity of USD750m.

Physicians Realty Trust completes USD400m unsecured revolving credit facility, with accordion feature for additional USD350m in borrowing capacity

Proceeds from the revolving credit facility have been utilised to repay the remaining balance of an existing $500 million syndicated facility which matured at the end of August 2013, according to a press release.

Mumtalakat arranges $250 million revolving credit facility

According to the company, this new agreement will replace a prior revolving credit facility agreement of the same amount, which had remained unused.

Aspo agrees new EUR20m revolving credit facility agreement

BANKING AND CREDIT NEWS-December 5, 2018-Atlanticus closes revolving credit facility with JPMorgan Chase Bank

Atlanticus closes revolving credit facility with JPMorgan Chase Bank

Gray Television announced that it is proposing, subject to market and other conditions, to replace its existing priority revolving credit facility with a new pari passu five-year revolving credit facility, amend its current term loan, and incur up to $2.15B of additional term loans under its senior credit facility.

Gray Television reports proposed $2.15B incremental term loan

The new credit facility amends and restates the company's prior credit agreement and, (i) extends the maturity date to May 30, 2019 (which date may be accelerated in certain cases); and (ii) replaces the existing revolving credit facility and credit-linked facility with a revolving credit facility in an aggregate principal amount of up to USD200.0m and a term loan facility in an aggregate principal amount of up to USD100.0m, among other things.

GenCorp amends USD300.0m credit facility

Pharmaceutical company Teva Pharmaceutical Industries Ltd (NYSE:TEVA) revealed on Tuesday the execution of a new five-year, USD3.0bn unsecured revolving credit facility,

Teva Pharmaceutical Industries Ltd reports launch of USD3.0bn syndicated revolving credit facility

MarkWest Energy Partners LP (MarkWest) (NYSE:MWE), a master limited partnership engaged in the gathering, transportation, and processing of natural gas; the transportation, fractionation, marketing, and storage of natural gas liquids; and the gathering and transportation of crude oil, has executed a new USD700m senior secured revolving credit facility with a syndicate of banks.