Definition for : Credit line

Credit line is a commitment of the bank to provide funds at the request of the borrower. In Return for this commitment, the borrower pays an additional fee. A credit line can be seen as an Option to raise a loan on predetermined terms and conditions. See also committed facilities. Credit line can be also called Confirmed credit line.

(See Chapters Chapter 22 Shares and Chapter 49 Managing working capital of the Vernimmen)

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