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Line of credit

Index Line of credit

A line of credit is credit source extended to a government, business or individual by a bank or other financial institution. [1]

14 relations: Bank, Collateral (finance), Credit, Credit card, Credit limit, Export, Financial institution, Hypothecation, Interest, Loan, Market liquidity, Overdraft, Personal finance, Revolving credit.

Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

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Credit

Credit (from Latin credit, "(he/she/it) believes") is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead promises either to repay or return those resources (or other materials of equal value) at a later date.

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Credit card

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus the other agreed charges.

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Credit limit

A credit limit is the maximum amount of credit that a financial institution or other lender will extend to a debtor for a particular line of credit (sometimes called a credit line, line of credit, or a tradeline).

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Export

The term export means sending of goods or services produced in one country to another country.

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Financial institution

Financial institutions, otherwise known as banking institutions, are corporations which provide services as intermediaries of financial markets.

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Hypothecation

Hypothecation is the practice where (usually through a letter of hypothecation) a debtor pledges collateral to secure a debt or as a condition precedent to the debt, or a third party pledges collateral for the debtor.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Loan

In finance, a loan is the lending of money by one or more individuals, organizations, and/or other entities to other individuals, organizations etc.

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Market liquidity

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.

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Overdraft

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.

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Personal finance

Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.

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Revolving credit

Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit.

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Redirects here:

Cash credit, Credit Facility, Credit account, Credit facility, Debt facility, Lines of credit, Personal Line of Credit.

References

[1] https://en.wikipedia.org/wiki/Line_of_credit

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