Question

Gus' Grill, a food truck restaurant in an urban city, worked with a local bank for a __________. This unsecured source of funds was available for Gus to tap into if he needed immediate funds for the business. He liked the fact that he had a cushion and only used it if he fell short of funds. Multiple Choice promissory note trade credit revolving credit agreement line of credit

Answer 1

As per the given situation, Gus' Grill, a food truck restaurant in an urban city, worked with a local bank for a line of credit. Thus the correct answer is D.

What is a line of credit?

A Line of Credit is a contract that a financial institution mainly a bank has with a customer that specifies the largest loan amount the customer is permitted to take out.

The borrower is permitted to draw money from the LOC whenever they need it, as long as they don't go over the maximum limit mentioned in the agreement.

Gus Grill may even use the unsecured source of money if he required quick cash for the company; this is referred to as the Line of Credit.

Therefore, the option D line of credit is the appropriate answer.

Learn more about the line of credit, here:

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