Revolving Credit
/rɪˈvɒlvɪŋ ˈkrɛdɪt/
Definitions
- (n.) A type of credit that allows the borrower to borrow, repay, and borrow again up to a set credit limit.
The company used revolving credit to manage its cash flow during seasonal downturns.
Related terms
Commentary
Revolving credit differs from installment credit in that the available credit replenishes as the borrower repays, which is a useful distinction to clarify in contracts.
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