Line of Credit

Definition:

Financing offered to businesses by banks or other financial providers to help the business with short-term financial needs. This term is often used in the real estate business, as well.

Examples:

That company only survived the economic downturn because they had a generous line of credit at the bank that they used for the months their expenses exceeded their receipts.

Many homeowners take out a line of credit on their house, and use the money to make improvements that raise the overall value of the property.