Die Heuning Pot Literature Guide
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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Line Of Credit

Definition:

A commitment from a bank to lend money to a borrower. Basically, the money is "available" should the borrower decide to borrow the money. The borrower typically pays some fee to the lender in return for extending the commitment. Loans made pursuant to a line of credit can be either secured or unsecured, but usually they are unsecured.

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