Line of Credit

A flexible borrowing arrangement that lets you draw money up to an agreed limit whenever you need it, paying interest only on what you use.

A line of credit gives you a safety net for cash flow gaps, such as buying stock before sales come in, without taking one big lump-sum loan.

You have a £10,000 line of credit, draw £3,000 to buy holiday stock, and only pay interest on that £3,000.