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Revolving Credit
Revolving credit is a line of credit you can draw, repay, and redraw up to a set limit, interest accrues only on the outstanding balance.
Last updated Reviewed by ICG Funding
Definition
What it means.
A business line of credit is the classic revolving credit facility. Draw $20,000, repay $10,000, and you have $10,000 available to draw again without reapplying. Credit cards are the consumer-facing version of the same structure.
Business lines of credit typically carry draw fees and/or annual maintenance fees on top of the interest rate. They are most useful for managing working capital gaps and inventory cycles, not for long-term capital expenditures.
Now what?
Get an offer that accounts for revolving credit.
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