In plain English
It fits inventory buying better than a term loan: draw to buy a load, repay as it sells, keep the line available for the next one.
Banks underwrite lines on provable cash flow, business bank history, financial statements, existing debt and the owner's credit.
Example
A $75,000 line: draw $40,000 for a truckload, repay over 60 days as units sell, keep $35,000 available.
Why it matters
It is usually the cheapest outside money a resale business can access.
COMMON MISTAKEUsing a revolving line to fund permanent overhead. Lines are for inventory cycles, not payroll gaps.