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--- gamemanual:howto_financing [2021/12/03 16:34] – [Financing] admin
+++ gamemanual:howto_financing [2021/12/03 17:19] – [Lines of Credit] admin
@@ Line 6: / Line 6: @@
 ===== Lines of Credit =====
+Line of Credit is a type of revolving debt, similar to a credit card. When you get a line of credit, the bank gives you a maximum spending limit. You're free to use to that limit. The money you use is called a balance, and you'll pay interest on that balance each month.
+Lines of credit are good for small borrowing needs and last-resort options. You should always get larger lines of credit while your company is doing well. You can always increase your maximum while you have balances. Increasing your maximum is wise because if you ever find yourself in a situation where your company is failing, banks will not be willing to give you a  line of credit, nor will they raise your maximums.
 ===== Loans =====