revolving loan
Reusable credit line
A revolving loan is a credit arrangement where the borrower can draw funds, repay them, and draw again up to a set limit—the balance revolves rather than being paid down once.
Credit cards are the most common example.
A revolving line of credit lets businesses cover cash flow gaps without applying for new loans each time.
- bankingFinancial institution transactions
- financeProvide money for
- borrowerOne who takes temporarily
- creditRecognition or payment deferral
- credit scoreNumerical measure of borrower reliability
line of credit · available credit · capital · cash flow · repayment · liquidity · funds · easy money · overdraft · debt · draw down · lender · renewal · interest · repayment terms · financial leverage · collateral · debt-to-income ratio
revolving loanterm loan
Fixed-schedule bank advance
installment loan · mortgage · auto loan · student loan · balloon loan
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