Define: Revolving Line Of Credit

UK Accounting Glossary

Definition: Revolving Line Of Credit



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Full Definition of Revolving Line Of Credit


A revolving line of credit is a type of credit that can be borrowed up to a pre-determined amount, repaid, and then borrowed again.

The money borrowed under a revolving line of credit is not loaned out in a lump sum. Instead, under a revolving line of credit, the borrower is extended a line of credit up to a certain amount, to draw from as he pleases. In most cases, a revolving line of credit has a variable rate rather than a fixed rate. A revolving line of credit may or may not be secured by collateral. In contrast to an instalment loan, a revolving line of credit typically does not have a set schedule for the repayment of principal. Examples of a revolving line of credit include credit cards and home equity lines of credit.


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Revolving Line Of Credit. PayrollHeaven.com. Retrieved March 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/revolving-line-of-credit/

Definition Sources


Definitions for Revolving Line Of Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.