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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

credit line

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
As a consequence, Daimler's financing cost declined relative to previous credit line transactions.
The biggest such credit line was created by Austria's Oberbank which signed deals with 14 Iranian private companies to allocate e1/41 billion for investments by Austrian companies in the country.
Minister Peter SzijjEirtE, who is leading a trade delegation to the UAE, said the credit line is available to Emirati and Hungarian companies working together.
Over 100 million euros a year are at the disposal of Macedonian firms through the credit lines of the Macedonian Bank for Development Promotion, the Innovations and Technology Development Fund and the self-employment programs of the Employment Agency.
The new credit line will be used for funding imports of goods and commodities and implementing projects, SANA said, without giving details.
20 December 2013 - US diagnostics and home testing products company Decision Diagnostics Corp (OTCMKTS:DECN) said yesterday it had closed an agreement for a revolving credit line of USD 12.5 million (EUR 9.2m) from Alpha Credit Resources LLC, part of Platinum Credit Management LP.
Bontems maintains the credit line from year-to-year, regardless of whether or not she uses it.
The credit line for agriculture companies, secured through the capitalization of the Macedonian Bank for Development Promotion (MBDP), is already in use, with first eight loans worth EUR 2,7 million already allocated, Vice Premier and Finance Minister Zoran Stavreski said.
Minister of Finance Suliman Al Hafez announced that the government negotiated with the IMF to finance its program under the Precautionary Credit Line (PCL) with the value of $1.4 billion, adding that the loan's procedures are not clear yet.
The Japan Bank for International Cooperation will set a $43 billion credit line to major Japanese banks to promote Japanese companies' acquisition activities overseas, sources familiar with the matter said Tuesday.
Israel-based Bank Hapoalim (POLI.TA) has announced that it has issued a credit line to its unit in Turkey.