Definition of Revolving Line Of Credit



Revolving line of credit is a facility offered by banks in terms of a credit account to clients that have built up a good credit score. The clients either business clients or personal clients, if assigned a revolving credit account may use the account whenever they see fit as far as the credit limit allowed is not crossed.

 


Once the borrower has used the facility the interest is accrued and capitalizes as long as the repayment is not made. The clients may enjoy extensive credit facility as long as the issuer permits are based on the history of timely repayments by the clients.


View More Corporate Finance Definitions