A line of credit is a given amount of unsecured short-term funds a bank will lend to a business.

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A line of credit refers to a specific amount of funds that a bank or financial institution will lend to a business, typically on an unsecured short-term basis. The borrower can draw upon these funds as needed, up to the maximum limit specified in the agreement, and only pays interest on the amount actually borrowed.

A Line of Credit Is a Given Amount of Unsecured