Lines of credit are non-guaranteed loans that specify the maximum amount that a firm can owe the bank at any point in time.

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A line of credit is a type of loan that establishes a maximum borrowing amount that a borrower can draw from, without having to reapply each time they need funds. It is typically not secured by specific collateral, meaning that the borrower is not required to pledge any assets as security for the loan. However, the borrower's creditworthiness and ability to repay the loan may be evaluated by the lender before approving the line of credit.

Lines of Credit Are Non-Guaranteed Loans That Specify the Maximum