Revolving Charge

Revolving Charge

A type of credit arrangement that permits a buyer or a borrower to purchase merchandise or obtain loans on a continuing basis as long as the outstanding balance of the account does not exceed a certain limit.

Revolving charge agreements are usually made in connection with the use of a bank or a department store credit card. The term revolving charge is used interchangeably with the term revolving credit.

When all outstanding charges are paid before or on the payment due date, which is usually immediately before the date of the second billing, no interest charge is assessed against the account, although this policy might change in the future. For example, a customer charges $200 in merchandise during the first week in January and receives the statement of her outstanding balance on February 2. If the customer pays the $200 balance in full before March 2, the payment due date, no service charge is added to the account.When the customer does not wish to pay the outstanding balance in full, she may make monthly installment payments, if the credit agreement so provides. The amount of each payment is determined according to a schedule based on a percentage of the outstanding balance of the account. A monthly interest charge is also added to the unpaid balance, usually at the rate of 11/2 percent per month.

Ordinarily each customer has his own line of credit, the maximum amount that the customer is permitted to charge. Once this limit is reached, no additional merchandise can be charged to that account until some payment has been made to reduce the outstanding debt.

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Also, the company's financial services segment provides wholesale financing, finances retail revolving charge accounts and operating loans; and offers crop risk mitigation products and extended equipment warranties.
The new Phillips 66 credit card programme and promotions launch August 1, 2013, and include a private label credit card for consumers and a branded business revolving charge card for commercial customers.
Somewhere down there in the under $50,000 loan range there are a lot of small business operators who have been looking for credit in all the wrong places (by using 30-day revolving charge cards to buy equipment and substitute for start-up capital, or borrowing from marginal creditors at usurious rates to pay their bills).
Examples of these include (but are not limited to) the LIFO index for taxpayers using dollar-value LIFO inventory method, the deferred gross profit for taxpayers with revolving charge accounts, intercompany adjustments for taxpayers who file consolidated returns, and a temporary liquidation of a LIFO layer at the installment date.
Customers are allowed to finance a purchase for a set period of time and their interest is forgiven if they complete payments within that period, but if they fail to do so the plans revert to being an ordinary revolving charge program in which interest applies.
Stock Building Supply and GE Business Credit Services, a unit of GE, recently signed an exclusive multi-year agreement to provide two national credit programs, offering Stock's qualifying commercial customers the option between a private label commercial open account receivables program or a business revolving charge account with flexible payment options.
The new agreement in Canada includes Wal-Mart's private label consumer credit business and SAM's CLUB's private label consumer, business revolving charge and business direct portfolios.
In addition, the company continued to move customers from an installment-based lending program to revolving charge accounts.
com credit card, a revolving charge account, will be available through Fingerhut; in addition, checks, Visa, Discover and MasterCard will be accepted.