Revolving Credit

A revolving credit is an open credit line that allows an individual or a company to borrow up to the credit limit agreed by the lender(s) and repay the debt in full or by a minimum amount per month or quarter (as agreed with lenders). As long as the credit limit is maintained, the borrower can continue borrowing. A credit card is a type of revolving credit. In loan capital markets, this form of borrowing is referred to a revolving credit facility.