Meaning & use
revolving line
Last updated
Meaning
nouncountablefinancebusiness
A credit arrangement that a borrower can use again after repaying what was borrowed, up to a set limit.
Grammar: Countable: use 'a revolving line' or 'revolving lines'.
Patterns
- open a revolving line
- a revolving line of credit
- draw on a revolving line
The company opened a revolving line of credit to cover seasonal costs.
She drew on the revolving line to pay suppliers, then repaid it the next month.
A revolving line lets you borrow again once the balance is paid down.
Word forms
| plural | revolving lines |
|---|
Common combinations
- revolving line of credit
- The bank offered a revolving line of credit with a five-year term.
- open a revolving line
- They opened a revolving line to manage cash flow.
- draw on a revolving line
- He drew on the revolving line to buy new equipment.
- repay a revolving line
- We repaid the revolving line before the interest rate rose.
Synonyms and how they differ
- line of credit
- A general term for any credit facility; a revolving line is a specific type that renews as you repay.
- overdraft
- Usually a short-term arrangement on a current account; a revolving line is often a formal business facility.
Word family
Commonly confused: revolving line or revolving door?
revolving line vs revolving door
A door that turns in a circle; not related to credit.
Practice
The business used a ______ to cover short-term gaps and repay it when sales improved.
Choose one answer.
'Revolving line' fits because it is a credit facility that renews. 'Revolving door' is a physical door, and 'revolving fund' is money that is replenished for a specific purpose, not a credit line.
Make it your own
Write a sentence using “revolving line”, then check it and compare it with the examples above.