A Line of Credit (LOC) is a versatile financial instrument that offers individuals, businesses, or entities access to a predetermined amount of funds that can be drawn upon as needed. Unlike traditional loans, which provide a lump sum upfront, an LOC offers revolving credit, meaning borrowers can withdraw, repay, and withdraw again within the set credit limit. This flexibility makes it a popular choice for managing short-term financial needs, addressing emergencies, or financing ongoing expenses.