A revolving line of credit assigns the borrower a specific credit limit. This limit is based on the client's credit score, and business income. The borrower is able to use and reuse it at their discretion. The account remains open until either the lender or the borrower decides to close it.

When payments are made on the revolving credit account, those funds become available to borrow again. The credit limit may be used repeatedly as long as you do not exceed the credit limit.

Many small business owners and corporations use revolving credit to finance capital expansion or as a safeguard to prevent future cash flow problems. Individuals can use revolving credit for major purchases and ongoing expenses, such as house renovations.