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Interesting Options With the Business Loans Now

A credit line is a right assigned to a client of a bank to receive a loan within a specified time period within the established amount. The withdrawal of the amount according to the credit limit can be carried out both once, and in several stages – depending on the type of the credit line.

Types of credit lines

Non-renewable credit line is a kind of a credit line within which a bank undertakes to issue a loan only once, but at any time within the term specified by the contract. This type of credit line is convenient in cases when a bank customer needs a loan within the term of this credit line; however, the exact date of the beginning of spending is still unknown. In order not to start paying interest on the loan before it starts working, it is appropriate to conclude an agreement on the provision of a non-revolving credit line. Great options for bad credit business loans are there now.

  • A revolving credit line is an opportunity to take the required amount in several stages within the time frame and the loan size established by the contract. In this case, the client of the bank pays interest only for the amount that he disposed of from the time it was received until maturity.
  • Framework credit line (frame credit) is a credit line that is opened to a bank customer for the possibility of paying for deliveries at a specified periodicity within the established time frame and amount.

Revolving credit line (revolving credit) is a type of credit line within which it is possible to receive loans during the contracted time many times in the event that the previous loan was fully repaid. In other words, a revolving credit line with an established limit of 1 000 000 rubles for a period of 1 year allows you to take and pay amounts within 1 000 000 rubles an unlimited number of times within this period.

There are also a number of specific types of credit lines – on-line (the repayment of part of the loan allows you to renew the amount of the next loan for this amount); Contocorrent (automatic system for obtaining credits to the account and their repayment); multicurrency (short-term financing, primarily foreign economic transactions); a credit line on demand (issuing loans on a daily basis or on request) and others.

 

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