Line of credit
Today’s real estate word of the day is the line of credit. That’s Shana Acquisto. She’s going to read it for us.
Line of credit an agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower.
Ok. That’s a line of credit could be used for many different things. Often commercial related and normally, you know, I guess it could range in size, but it depends. You could have a huge line of credit. You know, I think,
Yeah, so you can have flexibility to go and buy something if you want. Yeah. So new house, yeah, whatever those things happen to be just depends what you are. Or you can have a huge line of credit.
And some of these lines of credit are enormous. And depending on the size and scale of the business, they just continue to grow. And it’s kind of an easy way to finance items and not have to prove prove up all types of different things, but rather it’s based on your borrowing ability as the business.