A line of credit can be either a formal or an informal agreement between a borrower and a bank regarding the maximum amount of credit the bank will extend to the borrower subject to certain conditions,including the borrower's maintaining its financial strength.

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A line of credit is a formal agreement between a borrower and a bank where the borrower can access funds up to a certain limit, based on specific terms and conditions. The borrower is expected to maintain their financial strength to continue accessing credit.

A Line of Credit Can Be Either a Formal or an Informal