Line of credit,

Definition of Line of credit:

1. An amount of credit extended to a borrower.

2. Banking: Alternative term for overdraft.

3. 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?

1. I forgot to account for the car repairs in my check account and the line of credit allowed me to buy my groceries.
2. 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.
3. 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.
4. 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.

Line Of Credit

A pre-approved loan with a defined credit limit based on creditworthiness. With a line of credit, borrowers can take out multiple loans without charging an additional fee each time, as long as the total amount borrowed does not exceed the credit limit. See related questions about mortgages.