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 ?
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.
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.
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 withdrawal of the credit line creates a new obstacle for the airline as it struggles through an industry slump, reported Reuters.
Miller stresses that Rite Aid has drawn down the credit line only to support its letters of credit.
When analyzing your customer's financial statement, it is important to understand how close the company is to reaching their maximum borrowing under the bank credit line.