A secured line of credit is a credit account extended to a business by a financial institution wherein the creditor has established a lien against the assets of the business so that it has the right to seize and liquidate those assets should the business default on payments.
A secured line of credit is a credit account extended to a business by a financial institution wherein the creditor has established a lien against the assets of the business so that it has the right to seize and liquidate those assets should the business default on payments.
A line of credit can be used similar to a credit card, minus the plastic card. A business can access any amount of money within a pre-arranged limit at any time as needed for any purpose. The business is expected to pay that money back with interest within specified terms. Not all lines of credit are secured.
