A ___________ is an informal arrangement between a bank and a business that allows the ﬁrm to periodically borrow up to a pre-speciﬁed limit.

Question

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A non-committed operating loan is an informal arrangement in which a bank allows a firm to periodically borrow up to a pre-specified limit without a formal commitment to lend. This type of loan is more flexible than a committed operating loan, which requires the bank to lend a specific amount over a specific period of time. A banker's acceptance is a type of short-term financing used to facilitate international trade, a long-term loan commitment is a promise by a bank to lend a specific amount over a specific period of time, and a field warehouse financing arrangement is a type of lending that is secured by inventory stored in a warehouse.

A ___________ Is an Informal Arrangement Between a Bank and a Business