### Overview A revolving line of credit (RLOC) is a type of loan that allows borrowers to access funds up to a predetermined limit, and then repay and reuse those funds as needed. This type of loan is similar to a traditional line of credit, but with one key difference: it allows borrowers the ability to pay down their debt and then draw from it again. This makes an RLOC a great option for businesses or individuals who need access to short-term liquidity or need funds for unexpected expenses. ##### Banking Considerations Lines of credit typically mature annually. Lines of credit typically help support [[Working Capital]]. Commercial revolving lines of credit often require a [[Borrowing Base]]. Ideally, revolving lines of credit should be used to fund short term financing needs such as in seasonal businesses. Revolving lines of credit should not be used to fund borrower losses. **You cannot borrow your way to profitability.**