Which of the following terms best describes a credit commitment for a specific time period which a company can use as needed?

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A revolving line of credit is a credit commitment for a specific time period which a company can use as needed. It allows the borrower to draw and repay funds as needed, up to a certain limit, within the specified time period. This is different from a term loan, where the entire amount is disbursed at once, and the borrower makes regular payments of principal and interest over a fixed term. A syndicated bank loan involves multiple banks coming together to provide a loan to a borrower, usually for a large amount, and a private placement involves the sale of debt securities to a small group of investors. An asset-backed line of credit is a credit facility backed by a pool of assets, such as accounts receivable, inventory, or equipment, which can be used as collateral for borrowing.

Which of the Following Terms Best Describes a Credit Commitment