A(n) is a prearranged amount of credit that is available for a business to use as needed

Open Credit

Explanation:

Open credit is the type of credit where the borrower has access to a pre-approved loan limit. The lender and borrower agree on the maximum limit that the borrower should not exceed. The borrower continues to have access to funds as long as they do not exceed the set limit. Once the limit is reached, the borrower needs to make repayments to continue accessing the credit services.

Open credit is also known as the line of credit or revolving line of credit.

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