Line of Credit

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Related to Revolving Line: Revolving credit facility, Available Credit

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 ?
The secured revolving line of credit is subject to a borrowing base of trade accounts receivable.
The $10 million revolving line of credit with Wells Fargo is currently unused.
Under the revolving line of credit facility, the company is able to borrow up to an amount equal to the sum of 75% of its eligible accounts receivable, plus 30% of its eligible inventory, up to a maximum of $2 million plus any principal amounts of the term loan that have been repaid.
The bank also extended the maturity date of the Company's existing $500,000 revolving line of credit agreement to April 2013 from the original date of April 2012.
Redishred also has agreed to grant warrants to acquire an additional 1,000,000 common shares in connection with the revolving line of credit facility.
The term or type of loan will vary by lending institution; however, in general, these loans are non-committed, demand loans that may be priced with either a fixed rate for a period of time or a variable rate for a revolving line of credit.
NASDAQ: ASGN), a leading global provider of diversified professional staffing solutions, today announced the refinancing of its existing term loan facility and revolving line of credit.
The new senior credit facility includes a 5-year revolving line of credit of $550 million; a 5-year term loan A facility of $150 million; and a 7-year synthetic letter of credit facility of $130 million, which can also be used as a revolving line of credit.
The new senior credit facility is expected to include a 5-year revolving line of credit of approximately $375 million; a 5-year term loan A facility of approximately $100 million; a 7-year term loan B facility of approximately $177.
Secures Three Year Revolving Line of Credit of up to $175 Million
The loan agreement provides for a term loan facility and a revolving line of credit facility.
The credit facilities, as amended, consist of an existing five-year $250 million revolving line of credit and a new three-year $90 million term loan.