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 ?
The announcement of a new credit line for Iran investments follows several other recent moves in the same direction.
Over 100 million euros a year are at the disposal of Macedonian firms through the credit lines of the Macedonian Bank for Development Promotion, the Innovations and Technology Development Fund and the self-employment programs of the Employment Agency.
2 billion credit line was extended for a term of 12 months.
The new credit line will be used for funding imports of goods and commodities and implementing projects, SANA said, without giving details.
The EU has approved a Bulgarian request to extend a credit line of USD2.
Minister of Agriculture, Forestry and Water Economy Ljupco Dimovski said the credit line represented direct support for new investments, towards improving businesses in the agriculture sector, but also start new ones.
The proportion of students rejecting the credit line is expected to be significantly higher than zero.
Parlux said the interest rate on the credit line was lowered to 0.
Krispy Kreme also said it was working with an unnamed lending group to replace the credit line that could have gone into default as early as Friday.
0m working capital credit line originally issued to former regional carrier Crossair.
Originally Rite Aid had said the credit line under the new financing would be closer to $850 million.
A credit line can work for some companies, provided that the money is used for a purpose supported by the company's business plan.

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