Revolving Credit

See: Revolver. See: Line of Credit.

Revolving? Well, you cycle in to borrow some dough, then you pay it off...then you need to borrow more dough, and more, and then some more, then you pay some off and borrow more.

Think about a fast-growing pants company. You need slack capacity in inventory all over the place, so you started out needing 100 yards of denim. Then, as orders grew, you needed 500, then 3,000, then 10,000 yards of denim to satisfy the world's need for pants. A revolving credit line helped.

Basically, you borrow whatever you want, up to a limit, and the bank will charge you x percent as you go. Very similar to a line of credit, only you tend to pay these down regularly, as you don't want to be renting money when you don't need to do so. Otherwise, you're just giving the bank yet more money to count. And like, their socks are already off.