Revolving Credit Agreement Law and Legal Definition
A Revolving Credit Agreement allows buyers and sellers to use a line of credit to purchase goods or borrow cash advances. Revolving Credit Agreements are very common loan accounts in the U.S. This Agreement specifies the name and address of the buyer and seller who are willing to establish the revolving credit account. Under this Revolving Credit Agreement, buyer can use the credit line periodically as long as he does not exceed the limit. Revolving credit agreements are considered open-ended credit agreement. Revolving credit agreements only require buyers to pay a small percentage of the outstanding balance at the beginning of the period.