Line of Credit
A line of credit is a loan that lets you obtain funds at will within a specified time, and up to a given credit limit. It works much like a credit card, except that you can borrow and make repayments anytime you like. It allows you to use the funds at your discretion, instead of getting a single lump sum. Line of credit is most commonly used in home equity loans, where one takes advances from the home's equity value. it is also used by many companies to maintain liquidity of funds.