Question

In which type of credit does the bank allow you to borrow money up to a specific amount?

In
, the bank allows you to borrow money up to a specific amount, which is your

Answer 1

A line of credit works like a credit card. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow. You then draw and repay funds as you wish, as long as you don't exceed your credit limit.