A credit line, sometimes known as a “line of credit” (LOC), is a sort of standing loan that allows individuals, corporations, or other organizations to borrow money when they need it, repay it, and continue borrowing without having to qualify for a new loan.
A credit line is an arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specific borrower for a specified time period. Credit lines are great to have for any business. With a credit line, you can borrow as much, or as little, as you want, as long as it falls within the limit previously agreed upon by you and the lender.
The better credit scores your company has, the higher the credit line your company will be eligible for. Since you can just draw out money whenever your business needs it, the fear and possibility of overborrowing are virtually eliminated. It is a loan you can access at any time and take out exactly how much you want or need.
