Glossary
What is Revolving Credit?
Revolving credit is a type of financing that lets you borrow up to a set limit, repay, and borrow again without reapplying, as long as the account stays open and in good standing. Business lines of credit, credit cards and HELOCs are common examples. You generally pay interest only on the outstanding balance. Revolving credit suits recurring or unpredictable needs, such as covering timing gaps between expenses and customer payments.
Example
A business draws $20,000 from its $50,000 line, repays it a month later, and has the full $50,000 available again.
Related funding
Business Line of Credit: Draw when you need it, pay for what you use.
Related terms
Questions about an offer? Your advisor will explain every term.