A line of credit is credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolvingcredit card account, etc. It is effectively a source of funds that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. (However, the borrower may be required to pay an unused line fee, often an annualized percentage fee on the money not withdrawn.) Lines of credit can be secured by collateral, or may be unsecured.
Lines of credit are often extended by banks, financial institutions and other licensed consumer lenders to creditworthy customers (though certain special-purpose lines of credit may not have creditworthiness requirements) to address liquidity problems; such a line of credit is often called a personal line of credit. The term is also used to mean the credit limit of a customer, that is, the maximum amount of credit a customer is allowed.
What is a business line of credit? Naturally, you have heard of this as one of your options when you decide to start your own small business ...BusinessLine of Credit Explained. A business line of credit is a type of funding extended to business owners that is similar to a business credit card ... It’s difficult to qualify for a business line of credit.
There is always the need to start a business line of credit. Don’t know what LOC is? Not to worry because today, in this article, we are going to talk about the business line of credit in detail ... What is a business line of credit? ... A business line of credit is a great way for a ...
... a business line of credit is the relatively low-interest rate compared to other credit lines ... While some might feel like a business line of credit is better off being used by small companies, larger businesses can also benefit due to the flexibility of the business line of credit.
One of the overall most efficient ways you can keep track of your expenditures and ensure you stay within a specific budget is by opening up a business line of credit ... Another advantage to opening a business line of credit is, as stated above, you can use it however you want to and however you need to.