An agreement that makes a specific amount of short-term funding available to a business as it is needed is called a/an ______.

Question

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A line of credit is an agreement between a financial institution and a business that establishes a maximum loan balance that the business can access as needed, making funds available to the business on a short-term basis without the need to reapply for a loan each time funds are withdrawn.

An Agreement That Makes a Specific Amount of Short-Term Funding