is a loan from the bank that borrower can access anytime but can only takeout how much it needs  which agreed upon by the borrower and the lender. a commercial credit line is a way for the business to be able to access fund, as it need them. This eliminates the possibility of borrowing too much as the company needs since the business only borrows what it needs.

A line of credit can be utilized to take advantage of a unique business opportunity or cover unexpected shortages of cash. Interest is paid on only the accessed portion of the credit line, which is replenished as the balance is paid.