Question

After much searching, mort located an old banking friend of his father's. the banker offered mort up to $25,000 in unsecured funds, which mort's firm could borrow any time within a year, as long as the bank has the money available. mort was offered a(n): revolving credit agreement. asset guarantee pledge. pledging agreement. line of credit.

Answer 1

With the explanations given above, Mort was offered a line of credit. A line of credit is the agreement of a bank with a business to make a maximum amount of money available to them in an unsecured, short-term loan. The agreement is however dependent on the bank’s availability of funds.