Let's start with the stove. What is the main difference between a loan and a line of credit? A loan is a strictly defined amount, often also intended for strictly defined purposes (car loan, mortgage, etc.), which is issued to the borrower in its entirety, but only once. That is, having issued a loan of 300,000 rubles for a period of 5 years and received cash at the cash desk at a time, then the client only gives money for a long 60 months according to the payment schedule.

A credit line for business or consumer needs involves the receipt and return of funds. A number of important parameters are also added to this, the main of which are a flexible time regime for using a loan and the ability to operate with different amounts within the established credit limit.

For example, if you want to pay for a four-year education at a university, with an annual course cost of 60 thousand rubles, then the bank can provide you with a credit line in the amount of 240,000 rubles. The peculiarity is that you do not use this money immediately, but in parts: 30 thousand - the first semester, the second semester - another 30,000, and so on. Until the established credit limit (240,000) is exhausted. But by that time, university education will also be over.

The terms of repayment of the credit line are determined by the bank in the agreement, but the general rule is that every month it is necessary to return to the loan account a certain percentage of the amount of the actual debt (usually at least 10%). And by the time the credit line expires, the debt must be repaid in full. Additional bonus: in the process of using a credit line, interest is calculated only on the amount of actually used credit.

Reference

A credit line is a legally executed obligation of the bank to the borrower to provide him with loans within a certain period within the agreed limit. A credit line is usually opened within the framework of a certain large contract, executed over a long period, or within a fixed term of the bank's credit relationship with the client.

So, when a bank decides to provide you with a line of credit, it first sets a maximum limit - depending on your income level, the term and goals of the loan, and then gives you the right to use and return the money in installments, in a flexible mode, within the framework of the loan period specified by the agreement.

Types of credit lines

Credit lines are fraught with many more highlights and "wonderful discoveries", especially since each bank provides for individual conditions for using the product. For the borrower, the most important is the principle of operation: tranche or revolving (non-revolving and revolving credit line).

A non-revolving line of credit is the closest relative of consumer credit. Its main feature is that it has a withdrawal limit. The fact is that the agreement with the bank in this case clearly stipulates the rules for “scooping out” the limit, that is, the size and term of each payment (or tranche). It is necessary to receive tranches in accordance with the issuance schedule. If for some reason you did not use the tranche, the bank reserves the funds ... and rubs its hands pretty: a commission is usually provided for this operation.

When all tranches have been used up and the credit limit has been exhausted without a trace, all you have to do is return the money to your account. At the same time, even if you have paid off the debt 100%, you will not be able to reuse these funds (at least without renewing the agreement on the credit line). Credits.ru notes: this type of credit line is most convenient for entrepreneurs who finance a transaction in stages or pay for individual batches of products delivered, say, during the year. In addition, with an open but not exhausted credit line, the owner of the enterprise can quickly receive funds from the bank when necessary, which, with a competent approach, increases the solvency of the company.

A non-revolving line of credit is also often used for directed lending: mortgage, education, car loans.

A revolving line of credit, or revolving, is perhaps the most favorite type of lending among borrowers around the world. Its peculiarity is that the loan received from the bank can be "recharged", both completely and a little bit, in a comfortable mode. What is it about?

Let's say a bank issued you a "revolving" credit card with a limit of 50,000 rubles, at 18%, for a period of three years (36 months). The cash withdrawal limit is 100%, that is, if you prefer “cash” to non-cash payments, all 50,000 can be withdrawn at an ATM. And then the fun begins: by returning the money within the period set by the bank (usually 30 days), you can return only a certain part of the funds spent - an average of 10% of the amount of the actual debt, plus interest, plus commissions (for example, for cash withdrawals) .

The money you have returned to your account can be used again and again as long as your line of credit remains active.

And the more you return, the more profitable it is to use a credit card, since 100% repayment of the debt in the grace period minimizes interest payments. Of course, when the credit line expires, the "raspberry" ends. But the charm of the situation is that with the “good behavior” of the borrower who actively uses the line, giving the bank the opportunity to write off various commissions (for example, for using the card in retail), does not allow delays, at least periodically deposits more money than the minimum payment etc., the period of revolving lending can be ... virtually eternal. So, for example, an expired credit card is simply automatically reissued with the same credit limit. And if the debt was fully repaid by the time of the reissue, then the limit may be increased. Renewing the contract with the bank is usually not required.

A revolving credit line can be provided not only in the form of a card, but also in the form of a special bank account, which is very convenient for entrepreneurs.

Everything has to be paid

Despite the benefits described above and the convenience of using a credit line, this banking instrument is by no means free. First of all, the funds that make up the credit limit are not issued just like that, but at interest. And the percentage is usually quite high, especially for "revolving" loans (on average 20-25% and above). Instant revolving credit cards are the most expensive: they can have a percentage of 50% or more.

Often, for opening a credit line by an individual or a legal entity, the bank charges a commission (1-1.5% of the limit amount). The borrower also pays a commission for reserving funds (with a non-revolving line) and for various operations (especially a lot of "transaction costs" for holders of revolving cards).

In addition, in no case should you “get out” beyond the amount of the established limit: in this case, a so-called “technical overdraft” arises. It has additional interest.

More sad stuff. If the bank has doubts about your reliability as a borrower and the level of your income, the service of the credit line may be suspended. And at the most inopportune moment. Imagine that a tranche credit line is opened for you to pay a mortgage, and at the very moment when you have already picked up an apartment and, possibly, made an advance payment, the bank suddenly “cuts off the oxygen”, missing some certificate or finding a spot in your credit history… The sudden closure of a credit line can even put an entrepreneur on the brink of ruin.

A revolving loan can also be suddenly “discharged” by lowering the credit limit or refusing to reissue the card, so that you are faced with the need to pay off the debt under the consumer loan scheme.

A word of advice to users of lines of credit of any kind, but especially revolving ones: don't get carried away. Remember that there are no free cakes, and a flexible repayment schedule and reduced mandatory payments provide for increased responsibility and financial discipline of the borrower.

Anastasia Ivelich, expert editor

To maintain the competitiveness of an organization, long-term investments are needed. You can attract additional resources through an overdraft, a targeted loan or a credit line. You will learn about the essence and conditions for the provision of this service from this article.

Definition

A credit line is the right granted to an organization to use a bank within a specified period of time and in a prescribed amount. Specific conditions are prescribed in the contract. This service allows you to eliminate financial gaps without withdrawing capital from circulation. The client can independently choose when and how much funds to use.

Kinds

A non-revolving credit line is provided in tranches within a certain period and limit of funds. The borrower chooses when to use the money. Paying off part of the debt does not increase the limit.

A revolving line of credit is a loan that is provided in installments within the term specified in the agreement. Timely repayment of debt increases the limit of available funds. The client only pays for the actual amount of capital used.

In the first case, the borrower returns the body of the loan and interest to the bank, after which the line is closed. And in the second - after the repayment of the first tranche, the limit of available funds increases, and you can use the borrowed money again. There is only one limitation - the debt must be repaid within a certain period. Most often it is 3 months.

A non-revolving credit line with a disbursement limit is used if the client needs borrowed funds for a certain period. But the exact start date of spending is not known.

The framework credit line is opened to pay for deliveries that are carried out with a certain frequency, within a specified period of time.

There is a separate program under which a new tranche can be received only after the full payment of the previous one within a specified period of time several times. It's called the revolutionary line of credit.

There are several more specific types:

• on-call (the return of part of the funds allows you to receive a future loan for this amount);
• current (loan is issued automatically after repayment of the previous one);
• multicurrency (short-term financing of foreign economic operations);
• on demand (a loan is issued upon request) and others.

Examples

• The borrowing company has a non-revolving credit line in the bank in the amount of 1 million rubles. Three tranches were taken: 500, 200 and 300 thousand rubles. After receiving the last part, the limit was reached. The client must now repay the loan in full. He can no longer use the funds even with partial payment of the debt.

• The credit limit of the organization is 1 million rubles. The borrower took a tranche - 700 thousand rubles. After this operation, the limit was reduced to 300 thousand rubles. The following month, part of the debt was repaid - 500 thousand rubles. Now the amount of available funds is: 500 + 300 = 800 thousand rubles. That is, the client can withdraw funds several times and repay them in a timely manner. So that the amount does not exceed the one for which the credit line was granted. This is a revolving loan.

Sometimes the bank charges a fee for the unused part of the funds. In the example described above, this figure is 300 thousand rubles. Also, with a renewable scheme, a deadline is set for the return of each tranche. The contract can be drawn up for one year. But each separate part of the funds used must be repaid within 2-3 months.

• Under the terms of the revolving program, a limit of 1 million rubles is set. for 1 year. The client can borrow funds within this amount an unlimited number of times within 12 months.

The difference between a credit line and a target loan

• Convenience and benefit for the enterprise. The date of occurrence of the need for money is not known in advance. A credit line with a disbursement limit allows you to get a loan just in time and repay it when the opportunity arises.
• It takes less time.
• Although this service in banks is available to almost all customers, the limits and conditions of service depend on the scale of the organization's activities.
  In some cases, a deposit will be required. This may be raw materials that the company purchases with borrowed funds, or other assets. If there is a deposit, the rate is reduced, and the process of processing the transaction is accelerated.
• Can be issued at Sberbank. The terms of its use will be less favorable to the borrower. Credit lines are usually set at a lower

Features of the provision of services by Russian banks

The loan can be obtained in rubles, dollars or euros. The amount depends on the solvency of the legal entity, its credit history and account turnover. Terms vary from 3 months to 5 years. If a “long” credit line is opened with a debt limit of more than 1,000 thousand rubles, the bank may require adequate collateral: real estate, land, transport, equipment. A company can get a loan:

• at a fixed / floating interest rate;

• The commission % will be calculated separately for each tranche.

The bank's remuneration is always set individually, depending on the amount, currency, terms, financial condition of the borrower, the reputation of the organization and the level of risk. The commission ranges from 10-20% per annum. Opening a credit line will cost the borrower 2% of the limit amount. A revolving scheme may have a monthly maintenance fee. Limits on the amount of one tranche may also be set.

Benefits of a legal entity

1. Save time: there is no need to execute each transaction separately.
2. Interest is charged only on the funds used.
3. Repayment occurs automatically when money is transferred from counterparties to the borrower's account.
4. The interest rate for using the service is lower than for targeted loans.
5. With the help of a loan, a client can increase working capital, cover or direct money for business development.

Credit in Sberbank: conditions for obtaining the service

The largest financial institution in the country provides a loan of up to 3 million rubles. at a rate of 19-19.5% without collateral and guarantee. The company can use these funds to replenish current assets or to develop the business. At the same time, the bank has the right to unilaterally freeze tranches in the event of the first financial difficulties.

The limit of funds for which a Sberbank credit line is provided depends on the specifics of the business, the specific project, the financial stability of the company, collateral, and the business reputation of the organization. For large loans, collateral will be required. It can be buildings, equipment, vehicles, stocks, securities. The amount of the loan is 50-70% dependent on the value of the collateral. The application is considered for about a week. During this time, external and internal factors, the liquidity of the collateral are evaluated. If the bank makes a positive decision, then you can immediately sign a credit line agreement. Additional time will not be spent on the revaluation of assets.

Some statistics

The need of enterprises for "long" loans reaches 900 billion rubles. per year, but companies receive no more than 10% of this amount. investments reaches 7-10 years. Sberbank actively finances small businesses. About half of the organization's loan portfolio is long-term investments worth more than 600 billion rubles, which were provided by more than 1 million companies. For small businesses, a credit line "Business" has been developed, within which you can get borrowed funds for any purpose: from the purchase of materials to fixed assets and financing loans in other institutions.

News

It becomes unprofitable for banks to provide credit lines to legal entities. This is evidenced by judicial practice with bankrupt clients. Such claims are treated in the same way as for ordinary loans. The amount of funds that the client must return is not calculated from the loan limit, but from the gross volume of payments made. Bankers, on the other hand, consider this product not as a one-off, but as a renewable one. As a result, the costs of credit institutions are greatly increased.

Option for individuals

Russians can also apply for a credit line, but not all banks provide this service and only on bail. As the latter, an open deposit is used. The goal is to finance a loan from another bank or obtain working capital to start a business. However, this service has the following advantages:

• the ability to use borrowed funds without breaking the deposit and interest on it;
• you can apply for a service at a state of emergency, using a deposit of an individual as collateral;
• a loan is provided in the form of opening a bank account;
• minimum package of documents;
• there are no costs for registration of collateral;
• the interest rate is usually equal to that provided for the deposit, taking into account a small margin;
• no monthly commissions;
• a credit line can be opened in dollars, euros or rubles;
• the maximum period is six months.

There is another example - a renewable "credit card". Funds can be received at any time, and repaid with a delay. This also includes loans for education, housing construction, when money comes in tranches, and you can save on interest.

Conclusion

A credit line is a new type of business financing. Borrowed capital is given for a certain period of time. Funds can be used exactly when they are needed. Interest is charged only on the amount used. In this case, the rate can be fixed, floating or individual for each tranche. The Sberbank credit line, depending on the need for capital, can be provided without collateral or guarantee. It is serviced at a rate of 19.5% per annum.

Our compatriots, as well as in foreign countries, have long had the opportunity to choose a variety of credit products. At the same time, each person always has the opportunity to choose exactly such a line of credit, which most clearly satisfies a number of his basic requirements.

Recently, such a type of loan as opening a credit line has become increasingly popular among various segments of the population. Unlike the usual, classic lending (), the design of a credit line provides for the possibility of using borrowed funds exactly when the borrower needs it, while the interest is paid only on the amount that has actually already been used (spent).

Thus, legally speaking, a credit line is a written contractual agreement between a credit institution and a borrower, according to which, the lender provides the borrower within a specified time with a loan in the amount of a pre-agreed amount, that is, a limit. At the same time, the borrower has the opportunity to receive bank loans under the credit line repeatedly, and the bank, in turn, draws up a line of credit for its client with an established monetary limit, more than which the borrower will not be able to spend.
When drawing up a credit line agreement, two main conditions are always taken into account:

- the limit for the issuance of funds is determined, that is, this is the total amount of debt that a credit institution can provide to its client for the entire duration of the credit line agreement;

- and a clear debt limit is set, that is, the borrower receives the maximum possible loan, with the timely repayment of which, he has the opportunity to use credit funds again.

Main advantages bank line of credit is as follows:

- in order to conclude an agreement with the bank, it is enough to provide only once a package of necessary documents. Therefore, there is no need to constantly collect piles of papers in order to receive the required amount;

- the borrower has an excellent opportunity to repeatedly use the funds received when opening the line within a predetermined limit;

- the borrower decides for himself what amount of the loan would be best for him to take, of course, within the framework of the concluded agreement;

– there is an opportunity to take a loan in foreign currency;

– the borrower can use the provided loan in any amount, within the maximum credit line limit set by the bank;

- the loan can be repaid not only for the entire period at once, but also on the date specified in the agreement;

- interest is paid only on the amount of money that has already been used and spent.

However, credit lines have a few shortcomings not to mention:

- in the event that the borrower did not have time to spend the entire amount of borrowed funds on time and in the amount of the established line limit, the credit institution may impose some sanctions on him, for example, a penalty fee;

- it is possible to issue an extension of an already open line only when the borrower has fully repaid his debt to the bank and if there is no negative balance on his account.

Main types of credit lines: revolving and non-revolving credit line

Most modern financial institutions provide customers with a good credit history with two types of opening credit lines: revolving and non-revolving loans. However, each of these options has its own significant differences.
So, renewable a line of credit is considered one of the most favorite types of loans among a huge number of borrowers. This is due to the fact that the opening of a renewable line suggests more interesting opportunities for the borrower, namely: you can repeatedly use borrowed funds within the limit provided for by the agreement.

Moreover, the terms for which you can get a revolving line of credit can reach three years, at least - from one year. The borrower can use the loan amount at his own discretion, that is, not spend it all at once in one go, but do it periodically as needed.
Interest that will have to be paid on a revolving line of credit will accrue only on the amount of money that was spent by the borrower. But do not forget about the amount of the principal debt, which will also have to be paid every month.

And what is most remarkable is that the amount of the main debt that the borrower has deposited into the account can be used again. That is, for example, if the borrower in the current month pays his principal debt in the amount of a thousand rubles, he will receive a unique opportunity to use the same thousand again at will. And so on until the revolving line of credit is open.
Another thing, non-renewable a line of credit, which, in fact, is very similar to consumer loans we are used to. The bottom line lies precisely in the fact that the agreement with the bank stipulates in advance all the conditions for using the credit limit along the line: the general terms for the borrower to pay the tranche (payment) and its size. At the same time, it does not matter at all how quickly the bank debt will be repaid. Therefore, a non-revolving credit line will be most beneficial to those borrowers who periodically need relatively small funds or when using directed lending.

At the same time, the borrower must always be sure that the credit institution, as necessary, will provide the borrower with a new tranche. As soon as the borrower uses all possible tranches, and the limit is completely exhausted, he will have to start repaying the debt to the bank account.

In any case, before making a decision on obtaining a particular credit line, you need to calculate how profitable it will be and whether it will not be easier to use another credit product.

#4

That is, I can go to the bank and take out not just a consumer loan, but draw up an agreement to open a credit line?

#3

Here are the banks. If only I could save money with my wife. then they would not take a loan for housing. But life is harsh and nowhere to go. We will give the bank 3 million in 10 years. Great, what can I say ... What kind of credit line we have in the agreement, I have no idea at all, the main thing is I know how much I still owe ... pipets ...

#2

This is not something that often misleads customers - it is rather the norm of all banks, not to say something or not to finish, or simply not to show. A credit line is not a concept in which you can "get lost", there are more complex terms.

#1

Thank you for the article on credit lines, in terms of theory it is very useful to know what it is. The banks themselves do not explain their terminology very well, and this often misleads customers. Your site to help such people!!!

The ideal solution for managing your company's working capital.

Bank credit line- this is an opportunity for legal entities use credit funds at any time within the established limit and terms of crediting.

Types and benefits of credit lines

We use two forms of lending when opening credit lines for legal entities:

The Bank can open both a revolving credit line with an issue limit and a debt limit, as well as a non-revolving one.

Advantages of J&T Bank credit line

• Just one application. By submitting an application for opening a credit line only once, you get the opportunity to receive credit funds for a long period of time;

• Flexible approach to the issue of credit security. You can provide any real estate, vehicles and equipment, goods in circulation, securities as collateral for a loan.

• Money is always available. You always have reserve funds in case there is not enough money in the account to pay suppliers of goods and services;

• Flexible payment options. Choose from a range of payment options to suit your needs and budget. You can pay only the interest on the line of credit in one month, and even more than the amount of the monthly principal debt in another. At any time and without penalty;

• Use your line of credit over and over again. As soon as you repay the used part of the loan amount, it immediately becomes available for reuse. You can use the renewed part of the loan at any time when you need and without having to reapply every time;

• We increase the size of the credit line. If necessary, the size of the credit line can be increased. The initial amount of the credit line may be increased based on your positive credit history in J&T Bank;

• No fees on unused loans. You do not pay interest on the part of the credit line that you have not used.

Credit line conditions

When determining the interest rate, we take into account the financial situation of the applicant, the amount and quality of the security provided by him.

Opening and securing a credit line

After considering the application and making a positive decision, the bank sets the total amount of the loan, in accordance with the application of the borrower and his financial capabilities. After opening a credit line, the borrower gets the right to use the funds within the established limits during the entire term of the loan. At the same time, he is obliged, according to the agreement, to regularly pay for the use of the loan and / or repay the current debt.

Loan repayment procedure

The frequency, amount and terms of repayment of the principal debt under an open credit line are determined on an individual basis. The loan debt can be repaid in a lump sum at the end of the loan term or repaid according to the schedule agreed with the bank. Interest on the credit line is paid monthly or quarterly.

Requirements for borrowers

Credit lines are opened to any company and firm that has an operating and profitable business that has been operating for at least 12 months. Credit lines are also opened for private entrepreneurs.

Wherein:

• The client has no overdue debts to tax and other government agencies;
• The client has no overdue debts to the Bank or other credit institutions;
• The company is not at the stage of bankruptcy or liquidation.

Preferential conditions for opening a credit line for small businesses

We are ready to consider the possibility of granting preferential conditions for opening long-term credit lines for small businesses in connection with the established partnership with the Moscow Small Business Lending Assistance Fund, under whose guarantee loans up to 50% can be issued .

Securing the opened credit line

We take a flexible approach to the issue of collateral for loans. The following can be accepted as collateral:

• Non-residential and residential real estate
• Motor transport
• Equipment, mechanisms, machines, technological lines
• Finished products, goods, materials in circulation
• Securities

In addition, we accept personal guarantees from business owners, top managers, and third parties. A combination of pledges and sureties is allowed.

So, in the previous article, we talked about what an urgent loan and a non-revolving line of credit are. I suggest not to sway, but immediately go to ON.

3) Revolving credit line, under this name means the restoration of the debt limit with the obligatory repayment by the borrower of previously received funds on the loan (tranches). Taking into account the fact that the borrower has the right to use new tranches only with the obligatory observance of the maximum debt limit, but in addition to this, the issuance limit must also be observed. It is important to understand that the issuance of credit funds with a revolving credit line occurs in tranches that have intermediate repayment periods (depending on the Bank, and tranches can be different, 14, 30, 45, 60, 75, 90, 120, 180, 240 days) .

Additionally, the borrower has the opportunity to choose the term of the credit line that is most suitable for him, as well as the choice of intermediate repayment terms. If credit line implies fixed repayment periods, in this case an appropriate repayment schedule is drawn up.

Main line of credit advantage before a term loan - this is not only the speed of settlements, but also the available opportunity to repay the loan debt on a specific date and for a period of time as a whole. In addition, a significant advantage of the credit line is the use of new loan payments (tranches) after the repayment of the previous ones (infinite turnover), while at the same time observing the limit of the originally set lending limit (yes, frankly, the Bank will not let you get out of it).

Here I myself would say, what??? (If I didn't know what it was).

Now let's go in order. You and I have such concepts as NKL (clause 2.) and ON (clause 3). It seems that the positions are quite close… but still, I would say, they have critical differences. Further, for ease of understanding, these 2 products will be compared. Since earlier NKL was compared with a term loan. Accordingly, it will be clear, the differences between ON and LCL, at the same time there will be differences between ON and an urgent loan.

On a simple example. Let's say you have a limit ON, in the amount of 5 million rubles. Loan term, 24 months. The maturity of the tranche is 90 days. The limit is open on 03/01/2016. What does this mean? And how to use this goodness?

You needed 2 million rubles. You apply to the Bank for this amount with an application in the form of the Bank. On March 2, 2016, the bank transfers funds to your current account.

Now you have 2 million rubles. the selected limit is ON, and 3 million rubles. still free cash.

First of all, this means that you will pay%, only from 2 million rubles. (actual sample).

Now, let's discuss what happens with the repayment of this loan.

So (I remind you, the tranche period is 90 days). This means that after 90 days you will have to return 2 million rubles.

How to return?

And in any way convenient for you (you pay interest monthly, we will not talk about them, so as not to further confuse you.

How is it by anyone? - you ask?

Very simple.

Let's say you have 2 million rubles in 35 days. You can pay off this debt at once.

As a result, you will pay % for 30 days, and after 5 days.

After you repay 2 million rubles. Your credit limit will be restored again to 5 million rubles. Those. Even the next day, you can again take any amount, up to 5 million rubles, in order to repay it in 90 days (according to the tranche term, which can be either more or less).

Let's take the same example. But on the condition that you have chosen 5 million rubles at once. And every month you receive 1 million rubles.

So. As soon as you receive 1 million rubles, you can immediately repay the loan for this 1 million rubles. And, conditionally, the next day, you can again take 1 million rubles, with a maturity of 90 days again.

Thus, you can repay the loan, and choose it again, at least every day.

Those. You are not limited in the number of tranches, you are limited only by the initially set limit, above which you cannot go.

Or you can pay off at least 100 thousand rubles every day, and again draw up a loan.

In summary, this is a purely revolving loan. Those. when you understand that the turnover period of your products (from purchase from the supplier to sale to the buyer) is less than the maturity of the tranche.

In other cases, it is necessary to be very thoughtful in the process of obtaining a loan in the form of an ON. Under no circumstances should this loan be used for investment purposes, as repay this loan, you will only at the expense of working capital. In other words, by investing ON in an investment purpose (for example, construction), and repaying it at the expense of current assets, your “turnover” will simply be at zero, and you will not be able to keep sales at the same level.

Again. This product is designed for those who need to maintain working capital at the proper level. For example, you are a manufacturer who needs to have a cash reserve to buy raw materials on the market at an attractive price (which may be formed in the moment). Or, you are a trading company (wholesale or retail does not matter). When you sell products with deferred payment, and when you constantly need money to maintain the proper assortment.

- Well, if I'm a wholesale (manufacturing) company, why don't you suggest considering the factoring option, Alexander? the understanding reader will ask me.

Great question. And I think it deserves a separate consideration, in a separate article. Those. factoring is still not a form of credit, but a separate banking product. Which, in fact, is not a loan, but is an assignment of the rights of claims to the factor for funds received from the debtor.

That's why I'm saying. We will discuss factoring separately)).

So, I hope the topic of the renewable line has been discussed. And what is ON you heard.

In the next article, we will discuss the question, what is an overdraft. And what is its difference from ON)

If you have questions, please contact in the comments.

Source Alexander MSBHelp Kiselev.