Non-current
A line of credit should be reported in your notes payable, but should be listed as non-current as it is not due to be paid in full within the business year.Current
If your line of credit has been revoked or canceled and is due to be paid within the year, it should be marked current in your notes payable.Line of credit
A line of credit is the maximum amount that a lender will loan to a person or business. The amount can be established by the company's credit and cash flow history. In certain instances a company may be required to supply collateral to get a line of credit.
Revolving credit
A line of credit works much a like a credit card. You might be approved for $500,000, but if you have only used $100,000 then you only pay on the borrowed sum.
For businesses, attention track of paper money payable is a necessity. Some businesses extremely retain lines of credit. There are a couple of considerations when classifying the borderline of credit as either non-current or ongoing comment payable.
