What Is a Line Of Credit Agreement?

The credit line is also the loan limit. In English: Credit Line is the maximum loan limit stipulated in the agreement between the borrower and the bank. The validity period of the credit line is usually one year. Under normal circumstances, within the credit line, the enterprise can use the borrowing at any time as needed. However, banks are not obliged to borrow. If the creditworthiness of the company deteriorates, the company may not be able to borrow even within the credit limit. At this time, the bank will not assume legal responsibility.

credit limit

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The credit line is also the loan limit. In English: Credit Line is the maximum loan limit stipulated in the agreement between the borrower and the bank. The validity period of the credit line is usually one year. Under normal circumstances, within the credit line, the enterprise can use the borrowing at any time as needed. However, banks are not obliged to borrow. If the creditworthiness of the company deteriorates, the company may not be able to borrow even within the credit limit. At this time, the bank will not assume legal responsibility.

Under normal circumstances, within the credit line, the enterprise can use the borrowing at any time as needed. However, banks are not obliged to borrow. If the creditworthiness of the company deteriorates, the company may not be able to borrow even within the credit limit. At this time, the bank will not assume legal responsibility.