Glossary

Credit limit

A credit limit is the maximum amount a company can borrow on a revolving facility at any one time — a ceiling you can draw up to, repay, and reuse.

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CeilingMaximum you can draw

ReusableRepay and draw again

Definition

A credit limit is the agreed maximum on a revolving facility such as an overdraft or a credit line. Unlike a fixed loan amount, the limit is a ceiling rather than a sum advanced in full — you draw what you need beneath it.

In plain terms

It is the top of the tank, not the fuel in it. With a facility like Credicorp Flex, you can draw up to the limit, repay as cash comes in, and draw again — paying only for what you actually use. A limit can sometimes be raised as the business grows; see can I increase my credit facility limit.