Banks and other financial institutions can grant a small business a _____,which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand.

Question

Quizplus · Accepted Answer

A line of credit is an agreement between a financial institution and a borrower, where the lender agrees to provide a certain amount of funds that the borrower can draw upon as needed. This is commonly used by businesses for operational purposes, allowing them flexibility in managing their cash flow.

Banks and Other Financial Institutions Can Grant a Small Business