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Line of credit

• An agreement between a chartered bank and a business specifying the amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time.

• An informal arrangement between a bank and a customer establishing a maximum loan balance that the bank will permit the borrower to maintain.

• An arrangement by which a bank agrees to lend to the line holder during some specified period any amount up to the full amount of the line.

 
 

Follow this link for all the terms related to credit.

 
 Embedded terms in definition
 Firm
Lend
Time
Unsecured
Will
 
 Related Terms
 

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