Line of Credit

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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 ?
Given the rate of increase in negative free cash flow and the amounts drawn at the end of the third quarter, there is a high probability that Dana's current bank lines could now be fully drawn.
Harris, vice president, finance and administration, said, "Consummation of this transaction and the release of assets pledged under the former bank line of credit should provide adequate working capital for the foreseeable future.
Concurrently, the company expects to revise the terms of its bank line of credit with its bank lender such that a $5.
NASDAQ: AGSV) has been notified that it is being granted an additional $5 million increase in its existing line of credit resulting in a total bank line of $34 million.
Establishing this bank line is an important step in expanding our new portable storage product category," said Steve Gillings, Chief Financial Officer for I/OMagic Corporation.
The acquisition was funded by utilizing cash on hand and borrowings under the Company's bank line of credit.
CRA believes that current cash balances, cash generated from operations, and amounts available under its bank line of credit will be sufficient to meet the Company's anticipated working capital and capital expenditure requirements for at least the next 12 months.
The company is currently in discussions with our bank, which has control of JBP's receivables as collateral on a bank line of credit to determine what funds, if any, are available to OPLO.
The First Commercial Bank line of credit has an interest rate of prime plus one percent and is secured by Digital Fusion's receivables and certain guarantees.
BE) is pleased to announce the Corporation has increased it's Bank Line of Credit from $2 Million Dollars to $3 Million Dollars.