{"id":32623,"date":"2024-06-27T13:17:31","date_gmt":"2024-06-27T13:17:31","guid":{"rendered":"https:\/\/www.factris.com\/?page_id=32623"},"modified":"2025-08-26T10:00:11","modified_gmt":"2025-08-26T10:00:11","slug":"knowledge-base-line-of-credit","status":"publish","type":"page","link":"https:\/\/www.factris.com\/en\/knowledge-base\/line-of-credit\/","title":{"rendered":"Line of credit (Knowledge base)"},"content":{"rendered":"<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/www.factris.com\/en\/\">Home<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>Line of credit (Knowledge base)<\/strong><\/span><\/span><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-line-of-credit\">What is a line of credit?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A <a href=\"https:\/\/www.factris.com\/en\/news\/what-is-a-line-of-credit\/\"><span style=\"text-decoration: underline;\">line of credit<\/span><\/a> (LOC) is a form of short-term credit extended by a bank to a business. It allows the company to withdraw money up to a pre-agreed limit, usually based on the company&#8217;s <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.factris.com\/en\/knowledge-base\/creditworthiness\">creditworthiness<\/a><\/span>. It is intended as temporary financial support to solve temporary <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.factris.com\/en\/knowledge-base\/liquidity\">liquidity<\/a><\/span> problems, for example, or to cope with seasonal fluctuations in <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.factris.com\/en\/knowledge-base\/cash-flow\">cash flow<\/a><\/span>. The interest rate on a line of credit is often higher than other forms of financing, as the risk to the bank is higher due to the variable conditions and flexibility of the loan. The credit limit can be revised periodically, and the company has to pay <a href=\"https:\/\/www.factris.com\/en\/knowledge-base\/interest\"><span style=\"text-decoration: underline;\">interest<\/span><\/a> on the amount drawn.<\/p>\n\n\n<style>.wp-block-kadence-advancedbtn.kb-btns32542_e5b7bf-bb{gap:var(--global-kb-gap-xs, 0.5rem );justify-content:flex-start;align-items:center;}.kt-btns32542_e5b7bf-bb .kt-button{font-weight:normal;font-style:normal;}.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0{margin-right:5px;}.wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button{color:#555555;border-color:#555555;}.wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button:hover, .wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button:focus{color:#ffffff;border-color:#444444;}.wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button::before{display:none;}.wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button:hover, .wp-block-kadence-advancedbtn.kt-btns32542_e5b7bf-bb .kt-btn-wrap-0 .kt-button:focus{background:#444444;}<\/style>\n<div class=\"wp-block-kadence-advancedbtn kb-buttons-wrap kb-btns32542_e5b7bf-bb\"><style>ul.menu .wp-block-kadence-advancedbtn .kb-btn32542_7979f2-ea.kb-button{width:initial;}<\/style><a class=\"kb-button kt-button button kb-btn32542_7979f2-ea kt-btn-size-standard kt-btn-width-type-auto kb-btn-global-inherit kt-btn-has-text-true kt-btn-has-svg-false wp-block-button__link wp-block-kadence-singlebtn\" href=\"https:\/\/www.factris.com\/en\/knowledge-base\/\"><span class=\"kt-btn-inner-text\">Back to Knowledge base<\/span><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is a line of credit? A line of credit (LOC) is a form of short-term credit extended by a bank to a business. It allows the company to withdraw money up to a pre-agreed limit, usually based on the company&#8217;s creditworthiness. It is intended as temporary financial support to solve temporary liquidity problems, for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":8590,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"class_list":["post-32623","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is line of credit? | Knowledge base | Factris<\/title>\n<meta name=\"description\" content=\"Learn about a line of credit: A short-term form of finance provided by banks to companies. 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