A ________ is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available.

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A line of credit is an agreement between a commercial bank and a business that states the maximum amount of unsecured short-term borrowing the bank will make available to the firm over a given period of time, provided sufficient funds are available. A revolving credit agreement is similar, but allows the borrower to draw funds, repay them, and then draw them again. A short-term self-liquidating loan is a loan used to finance inventory or accounts receivable that will be repaid as those assets are sold or collected. A single payment note is a loan that is repaid with a single lump sum payment at maturity.

A ________ Is an Agreement Between a Commercial Bank and a Business