A line of credit (also called a Credit Facility or Tranche ) is an authorization (right of draw) given by a bank to a borrower to raise funds up to a fixed ceiling and for a given period. It may also include a credit opening to make the debtor current account within certain limits.
A company can potentially benefit from a line of operating credits and a line of investment credits . These lines are often negotiated annually between the company and its bank.
The line is sometimes multi-currency in the case of foreign currency credit .