Line of Credit
/ˈlaɪn əv ˈkrɛdɪt/
Definitions
- (n.) A credit facility extended by a financial institution that allows the borrower to draw funds up to a specified limit as needed.
The company secured a line of credit to manage its cash flow during seasonal fluctuations.
Related terms
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Commentary
Typically used in commercial financing, clarity in specifying the credit limit and draw conditions is essential to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.