What is Line of Credit (LOC)?

A Line of Credit (LOC) is a credit facility provided to the government, business or individual by a financial institution or another commercial funder. The borrowing can typically draw down on the account at any time, with a maximum limit which cannot be exceeded. The advantage with a LOC over a term loan is a borrower is typically only charged interest on the amount withdrawn at any given time vs an entire loan amount.

Audio Definition/Pronunciation

OTHER TERMS BEGINNING WITH "L"