Difference between revisions of "Line of credit"
(Created page with "Line of credit is an arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period. ==Definitions== According to Fina...") |
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Line of credit]]. An arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period. | :[[Line of credit]]. An arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Line of credit]]. A lending arrangement from a bank in which a company is allowed to borrow money as needed, up to a specified maximum amount, yet only pay interest on the portion that is actually borrowed until it is repaid. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Financial Management]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 11:56, 15 July 2020
Line of credit is an arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Line of credit. An arrangement in which a bank agrees to lend up to a specified maximum amount of funds during a designated period.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Line of credit. A lending arrangement from a bank in which a company is allowed to borrow money as needed, up to a specified maximum amount, yet only pay interest on the portion that is actually borrowed until it is repaid.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
