What is an investment line of credit?
Through what’s called a portfolio line of credit (also known as a “margin loan”), investors can borrow against their taxable brokerage account at a moment’s notice. In other words, an investor can use their stock holdings and other investments as collateral for a loan while their money stays in the market.
What is a small business line of credit?
A business line of credit is a flexible loan for businesses that works like a credit card. Companies draw money from their credit lines as needed, only paying interest on the portion of money borrowed. As they repay the amount borrowed, they replenish the funds available.
What is a personal line of credit and how does it work?
A personal line of credit (sometimes referred to as a PLOC) is a set amount of money from which you can borrow (up to the limit) for a given period of time, referred to as your draw period. Similar to a credit card, you draw the amount you need from the available balance, and you only pay interest on that amount.