A line of credit is an informal agreement that permits a company to borrow up to a prearranged limit without having to follow formal loan procedures and paperwork.

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A line of credit is an informal agreement that allows a company to borrow funds up to a certain limit without having to go through the formal loan process. This type of financing is often offered by banks or other financial institutions and can be beneficial for businesses looking for flexible access to funds.

A Line of Credit Is an Informal Agreement That Permits