Definition, Meaning & Synonyms
line-of-credit
noun
/laɪn ʌv ˈkrɛdɪt/
Definition
A line of credit is a flexible loan from a financial institution that allows the borrower to access funds up to a certain limit, as needed.
Examples
- A business can use a line of credit to manage its cash flow during slow sales periods.
- She took out a line of credit to cover unexpected expenses.
- Many homeowners consider a line of credit for home improvements.
Meaning
It provides businesses and individuals with a maximum borrowing capacity, which they can use at their discretion, usually for short-term financial needs.
Synonyms
- credit line
- revolving credit
- loan facility
