A line of credit would be considered:

Question

Quizplus · Accepted Answer

A line of credit is an agreement between a borrower and a bank or other financial institution that allows the borrower to borrow up to a pre-approved limit on an as-needed basis. It is a flexible form of financing that can be used for working capital, inventory purchases, and other short-term financing needs. The borrower only pays interest on the amount borrowed, and the loan can be repaid and then borrowed again without having to reapply for the loan.

A Line of Credit Would Be Considered