Line of Credit

A line of credit is a financial arrangement that allows an individual or a business to borrow a specific amount of money from a lender up to a predefined limit. Unlike a traditional business loan where you receive a lump sum amount upfront, a line of credit provides the flexibility to borrow and repay funds as needed. Interest is typically only charged on the amount borrowed, and once repaid, that portion of the credit becomes available for borrowing again. It’s a useful financial tool for managing short-term expenses or unexpected costs.