Line of credit,
Definition of Line of credit:
An amount of credit extended to a borrower.
Banking: Alternative term for overdraft.
Trading: Extent to which a seller will extend credit payment terms to a buyer. It is the total of the amounts of (a) unpaid invoices, (b) goods in transit, and (c) orders confirmed but yet to be shipped.
How to use Line of credit in a sentence?
- I forgot to account for the car repairs in my check account and the line of credit allowed me to buy my groceries.
- When Jake first started the company he was short on funds so he applied for a store credit card and got a line of credit which he used to buy the needed furniture; additionally they gave him a deal for no interest for 6 months so he didnt have to be in a hurry to pay it back.
- In the age of brokerage accounts, credit cards, home equity loans, lines of credit and mutual funds, bank deposits are virtually useless as an indicator of available buying power.
- Wells Fargo granted our company a $25,000 start-up LINE OF CREDIT for our restaurant to get off the ground and start serving our customers in the fashion we aspire to serve them.
Meaning of Line of credit & Line of credit Definition