A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time.
A)term loan
B)factor
C)line of credit
D)floor plan

Question

Quizplus · Accepted Answer

A line of credit is an agreement with a bank that allows a business to borrow up to a certain amount without having to apply for a new loan each time. This can be helpful for small businesses that need occasional access to funds but do not want to go through the hassle of applying for a new loan each time they need to borrow money. Term loans are typically used for one-time investments, factors are third-party companies that buy a company's accounts receivable, and floor plans are typically used in industries that involve inventory, such as car dealerships.

A ________ Is an Agreement with a Bank That Allows