A line of credit denotes an off-the-cuff settlement between a bank and a business agency by which the financial institution allows the agency to borrow up to a certain restrict of money supplied the financial institution has funds obtainable. In occasions of credit score crunch, the lender bank has no obligation to lend the cash. An alternative to a line of credit is a revolving cost or credit loan. It is a proper short-term financing agreement by which the financial institution guarantees to advance the money when the borrowing firm requires it. An LBO is an acquisition of an organization financed predominantly with debt.
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