revolving credit agreement

简明释义

限额循环周转信贷合同

英英释义

例句

1.Many businesses rely on a revolving credit agreement to manage their cash flow during slow seasons.

许多企业依靠循环信用协议在淡季管理现金流。

2.Before signing a revolving credit agreement, it's important to understand the interest rates involved.

在签署循环信用协议之前，了解相关的利率非常重要。

3.A revolving credit agreement allows you to borrow funds repeatedly up to a certain limit.

一个循环信用协议允许你在一定限额内反复借款。

4.She used her revolving credit agreement to cover unexpected medical expenses.

她利用她的循环信用协议来支付意外的医疗费用。

5.Understanding the terms of a revolving credit agreement can help you avoid excessive debt.

理解循环信用协议的条款可以帮助你避免过度负债。

作文

A revolving credit agreement is a financial arrangement that allows individuals or businesses to borrow money up to a certain limit, repay it, and borrow again as needed. This type of credit is commonly used by consumers for various purposes, such as managing day-to-day expenses, making large purchases, or dealing with unexpected emergencies. Understanding how a revolving credit agreement works can help individuals make informed financial decisions and manage their debt effectively.The primary feature of a revolving credit agreement is its flexibility. Unlike a traditional loan where the borrower receives a lump sum that must be repaid in fixed installments, a revolving credit agreement allows borrowers to withdraw funds as needed, up to their credit limit. This means that if a person has a credit limit of $5,000, they can borrow any amount up to that limit, repay some or all of it, and then borrow again without having to reapply for credit. This flexibility makes it an attractive option for many consumers.Another important aspect of a revolving credit agreement is the interest rate. Typically, these agreements come with variable interest rates, which means the rate can change over time based on market conditions. Borrowers should be aware of this, as it can impact the total cost of borrowing. Additionally, the interest is usually charged only on the amount borrowed, not on the entire credit limit. This can lead to lower costs if the borrower manages their credit wisely by paying off the balance in full each month.However, while a revolving credit agreement offers many benefits, it can also lead to potential pitfalls. One of the most significant risks is accumulating debt. Because borrowers can continuously access credit, there may be a temptation to spend beyond their means. If not managed properly, this can result in a cycle of debt that becomes difficult to escape. It is crucial for individuals to set a budget and stick to it when using a revolving credit agreement to avoid falling into financial trouble.Moreover, late payments on a revolving credit agreement can negatively impact a person's credit score. Credit scores are essential for obtaining favorable loan terms in the future, and a low score can hinder one’s ability to secure loans or credit at reasonable interest rates. Therefore, it is vital to make timely payments and understand the terms of the agreement fully.In conclusion, a revolving credit agreement can be a valuable financial tool for managing expenses and accessing funds when necessary. Its flexibility and convenience make it an appealing choice for many consumers. However, it is essential to approach it with caution and responsibility. By understanding how a revolving credit agreement works, individuals can harness its benefits while minimizing the risks associated with debt accumulation. Proper management and budgeting are key to ensuring that this financial instrument serves its intended purpose without leading to financial difficulties.

循环信用协议是一种金融安排，允许个人或企业在一定限额内借款、偿还并根据需要再次借款。这种类型的信用通常被消费者用于各种目的，例如管理日常开支、大额购买或处理意外紧急情况。理解循环信用协议的运作方式可以帮助个人做出明智的财务决策，有效管理债务。循环信用协议的主要特点是灵活性。与传统贷款不同，传统贷款要求借款人获得一笔固定金额并按固定分期偿还，而循环信用协议允许借款人根据需要提取资金，最高可达其信用限额。这意味着如果一个人的信用限额为5000美元，他们可以借取最高达该限额的任何金额，偿还部分或全部金额，然后再次借款，而无需重新申请信用。这种灵活性使其成为许多消费者的吸引选择。循环信用协议的另一个重要方面是利率。通常，这些协议附带可变利率，这意味着利率可能会随着市场条件而变化。借款人应当注意这一点，因为它会影响借款的总成本。此外，利息通常仅对借款金额收取，而不是对整个信用限额收取。如果借款人通过每月全额偿还余额来明智地管理其信用，这可能会导致较低的成本。然而，尽管循环信用协议提供了许多好处，但也可能导致潜在的陷阱。最显著的风险之一是积累债务。由于借款人可以持续访问信用，可能会有超出自己能力范围消费的诱惑。如果没有妥善管理，这可能会导致难以摆脱的债务循环。因此，个人在使用循环信用协议时设定预算并遵循预算至关重要，以避免陷入财务困境。此外，循环信用协议的逾期付款可能会对个人的信用评分产生负面影响。信用评分对于未来获得优惠贷款条款至关重要，低信用评分可能会妨碍人们以合理利率获得贷款或信用。因此，及时付款并充分理解协议条款至关重要。总之，循环信用协议可以成为管理开支和在必要时获取资金的宝贵金融工具。其灵活性和便利性使其成为许多消费者的吸引选择。然而，必须谨慎和负责任地对待它。通过理解循环信用协议的运作方式，个人可以利用其好处，同时将与债务积累相关的风险降到最低。妥善管理和预算是确保这一金融工具发挥预期作用而不导致财务困难的关键。