A Line of Credit Agreement (LOC) is a contract between a lender and a borrower, which sets out the terms and conditions for the provision of an agreed-upon amount of credit. This agreement typically outlines the repayment schedule, interest rate, fees, and other important details. Essentially, it provides the borrower with access to capital on an ongoing basis, allowing them to manage their cash flow more effectively and manage their debt obligations more strategically. With a Line of Credit Agreement in hand, a business can take advantage of valuable short-term financing opportunities that may otherwise be unavailable.