Line of Credit


Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia.

Line of Credit

The maximum borrowing power granted to a person from a financial institution.

Line of credit denotes a limit of credit extended by a bank to a customer, who can avail himself or herself of its full extent in dealing with the bank but cannot exceed this limit. It most frequently covers a series of transactions, in which case, when the customer's line of credit is nearly exhausted or not replenished, the customer is expected to reduce the indebtedness by submitting payments to the bank before making additional use of the line of credit.

See: capital
References in periodicals archive ?
This type of loan also allows businesses to take advantage of special discounts offered by suppliers or to gear up for a special sales effort, such as a seasonal line of credit.
For instance, the survey indicates that the mean balance outstanding on a traditional closed-end loan is about one and one-half times the average balance on an active home equity line of credit.
4 million first mortgage and a $1 million line of credit for Manor Towers, a 190-unit co-op located at 3671 Hudson Manor Terrace in Riverdale, NY; a $2.
5 million first mortgage and a $500,000 line of credit for a 154-unit co-op located at 11 Sentry Road in Scarsdale, NY; a $4 million first mortgage and a $500,000 line of credit for a 97-unit co-op located at 740 East Broadway in Long Beach, NY; a $3 million first mortgage and a $500,000 line of credit for a 72-unit co-op located at 210 East Broadway in Long Beach, NY; a $1 million line of credit for a 20-unit co-op located at 205 West 19th Street in Manhattan; and a $750,000 line of credit for a 136-unit co-op located at 315 East 69th Street in Manhattan.
Howe originated the largest loans of the month with a $13 million first mortgage and a $2 million line of credit for a 234-unit co-op located at 720-730 Fort Washington Avenue in Manhattan; a $13 million first mortgage and a $2 million line of credit for a 375-unit co-op located at 165 West 66th Street in Manhattan and a $7.
Among other deals, NCB's senior vice president Sheldon Gartenstein originated a $2 million first mortgage and a $200,000 line of credit for a 19-unit condop located at 140 Fifth Avenue in Manhattan; a $1.