A line of credit to a business is like _______ to an individual.

Question

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A line of credit for a business is similar to a credit card for an individual. It allows the business to borrow funds up to a certain limit, and interest is only charged on the amount borrowed. The business can draw on the line of credit as needed, and pay it back over time. A term loan (A) is a fixed amount that is borrowed and repaid over a specific period of time, while a bond (B) is a financial instrument used by companies to raise capital by borrowing money from investors for a fixed period of time at a fixed interest rate.

A Line of Credit to a Business Is Like _______