n. 1 (context finance banking English) A financial agreement under which a bank or other lender agrees to provide a client with loans of money up to an approved limit during a predefined period. The client may borrow the entire credit amount all at once or in portions during the specified period. 2 (context finance banking English) The maximum borrowable amount specified in such an agreement.
A line of credit is credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolving credit card account, etc. It is effectively a source of funds that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. (However, the borrower may be required to pay an unused line fee, often an annualized percentage fee on the money not withdrawn.) Lines of credit can be secured by collateral, or may be unsecured.
Lines of credit are often extended by banks, financial institutions and other licensed consumer lenders to creditworthy customers (though certain special-purpose lines of credit may not have creditworthiness requirements) to address liquidity problems; such a line of credit is often called a personal line of credit. The term is also used to mean the credit limit of a customer, that is, the maximum amount of credit a customer is allowed.
Usage examples of "line of credit".
This time, however, Gul Fubar was ready with a large enough line of credit.
The trouble starts if you ever run through that last line of credit and hit the zero.
But under a pseudonym, Leia had a line of credit from the Alliance for use in emergencies, and Luke knew the account's access code.
Accordingly, he's used the mage relays to establish a line of credit in his name with House Harkanath's local factors, and he expects you to draw upon it.
In Brandark's case, that was due in no small part to the line of credit Duke Jashâ.
He wouldn't have given that line of credit to someone he didn't trust.