Which is true about lines of credit?
A)The company generally must repay the credit line in full monthly.
B)The borrower can borrow up to an agreed upon limit.
C)Interest is charged on the full amount of the agreed upon limit.
D)Lines of credit are particularly useful for steady income businesses that have very little volatility in revenue.

Question

Quizplus · Accepted Answer

Lines of credit offer flexibility to borrowers by allowing them to borrow up to a certain limit as needed, rather than receiving a lump sum upfront. Interest is typically only charged on the amount borrowed, not the entire credit limit.

Which Is True About Lines of Credit