A line of credit represents a guarantee from a bank to lend a firm a given amount of money.

Name: A line of credit represents a guarantee from a bank to lend a firm a given amount of money.
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A line of credit is an arrangement between a financial institution and a customer that establishes a maximum loan balance that the lender permits the borrower to access or maintain. It does not guarantee a firm will borrow the money, but it allows the firm to borrow up to a certain amount when needed.

A Line of Credit Represents a Guarantee from a Bank