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.
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 ?
The announcement of a new credit line for Iran investments follows several other recent moves in the same direction.
"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.
Home equity credit lines, commonly referred to as HELOCs, typically are second mortgages structured as open lines of credit up to a stated limit.
Some financial institutions offer credit lines that are outside the traditional cash advance model.
The bank said that it is cutting the credit lines because of adverse financial conditions.
Our solution has been to set up subsidiaries overseas with partners who can provide necessary credit lines and consequently move HQ operations offshore.
If premium financing were not available, a company would have to dip into its bank credit lines to pay its insurance premiums and would have less cash available for routine business needs such as funding accounts receivable.
A credit line can work for some companies, provided that the money is used for a purpose supported by the company's business plan.
Leader specializes in obtaining short, medium and long-term financing and credit lines for its clients at the lowest prevailing interest rates.
Seasonal fluctuations go hand in hand with credit lines. It is typical to see the highest credit lines just before and during the busy season when a company builds inventory but has not yet collected the sales from the busy season.
surfaced when they chose to draw down bank credit lines because they couldn't raise money through the sale of short-term debt.