Line of Credit
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Description
A prearranged borrowing agreement in which a bank stands ready to advance the borrower without delay any amount up to a specified credit limit. Once used, a line of credit becomes a liability. The unused portion of the line represents the ability to borrow cash without delay.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Line of credit
Learning Material
Covered in Topic(s)
| Financial Assets |