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Definition of seasoned trade lines

Updated: 8/16/2019
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16y ago

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A trade line is another term for a Line of Credit.

A Line of Credit is a predetermined amount of funds your company can draw on to finance short-term need, such as a build-up of inventory for your busy season. Typically, a commercial line of credit must be paid to zero for some part of the year. It is not designed to be long-term credit.

A seasoned line of credit or seasoned trade line is one that has been in existence long enough that the lender is comfortable you will pay as agreed based on your actual payment history.

For many banks, a line of credit or trade line, paid as agreed for two years or more, is seasoned.

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