Stand-by Line of Credit

Categories: Bonds, Banking

Stand by your money. 

That's how the saying goes, right?

This term simply means a specified, predetermined amount of money that a company or investor can get from the bank quickly. It's like having a credit card, only more official. And hopefully with a lower interest rate.

It's different from a normal loan in that the borrower doesn't have to take all the money at once.

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