An informal agreement that allows a company to borrow up to a prearranged limit without having to follow formal loan procedures and prepare paperwork is known as___________.

A. A line of credit
B. Commercial
C. Paper
D. A debt covenant
E. Working capital

A line of credit is the process whereby there is an arrangement between a financial institution usually a bank and a company or customer that ascertains or agree on the maximum loan amount the company can borrow, without having to follow formal loan procedures. The borrower can access funds from the line of credit at any time as long as they do not exceed the maximum amount (or credit limit) set in the agreement and meet any other requirements such as making timely minimum payments. It may be offered as a facility.

An informal agreement that allows a company to borrow up to a prearranged limit without having to follow formal loan procedures and prepare paperwork is known as___________. A. A line of credit B. Commercial C. Paper D. A debt covenant E. Working capital

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An informal agreement that allows a company to borrow up to a prearranged limit without having to follow formal loan procedures and prepare paperwork is known as___________.

A. A line of credit
B. Commercial
C. Paper
D. A debt covenant
E. Working capital