credit-line

Vocabulary Word

Definition

A 'credit line' is a flexible loan from a bank or financial institution. Unlike a regular loan, you don't get a lump sum of funds but can borrow and repay funds up to the agreed limit at your convenience.

Examples in Different Contexts

In banking, a 'credit-line' is a flexible loan from a bank or financial institution that allows customers to borrow money up to a certain limit and repay it over time. A bank officer might explain, 'A credit-line offers the convenience of accessing funds as needed, with interest charged only on the amount used.'

Practice Scenarios

Business

Scenario:

Our emergency fund has been depleted due to unforeseen costs. We might need to find an alternate source of funds to cover these costs.

Response:

Securing a credit line from our partnered bank can cover these sudden costs and protect our cash flow.

Retail

Scenario:

We need to incentivize our loyal customers with exclusive perks. Let's brainstorm ways to reward their patronage.

Response:

Offering a credit line with special rewards could be a great way to appreciate and engage our frequent shoppers.