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Banks and other financial institutions can grant a small business a _____, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand.

1 Answer

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Answer:

line of credit

Step-by-step explanation:

A line of credit refers to a loan facility provided to a nation, company, or person client by a bank or any other lender that allows the client to rely on the facilities once the client needs funding. A credit line has many types, like those of overdraft, request loan, specific purpose, product packaging credit, term loan, rebate, business bill payment, standard rotating credit card profile, respectively.

It really is successfully a funding source that can be easily pressed at the request of the creditor. Interest is paid just for retracted money actually. Credit lines can be backed by assets, or could be unprotected.

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