> For the complete documentation index, see [llms.txt](https://docs.creditcoop.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.creditcoop.xyz/core-concepts/secured-line-of-credit.md). # Secured Line of Credit A revolving credit facility secured by onchain cash flows and/or asset collateral. The Secured Line of Credit is a revolving credit facility secured by onchain cash flows and/or asset collateral. A single facility (a "Line of Credit", "Line", or "LoC") belongs to a single Borrower and can contain any number of individual **Credit Lines** (also called **Credit Positions**) from any number of Lenders, in any ERC-20 token, each at individually agreed interest rates and deadlines. Every Credit Position is represented onchain as an ERC-721 token. **Benefits for Borrowers** * Flexible, non-dilutive financing for OpEx and growth with no fixed repayment schedule * On-demand liquidity — draw only what you need, when you need it * Leverage future cash flows and revenue as security via the Spigot * Syndication-ready — one facility can hold positions from many lenders, in multiple assets, on individual terms and deadlines * Early Withdrawal Fees compensate the Borrower if a Lender withdraws committed capital before term **Benefits for Lenders** * Price borrower risk individually — every position has its own drawn rate, facility rate, and deadline * Earn on committed capital even before it is drawn (the facility rate) * Withdraw undrawn capital on demand (subject to any agreed Early Withdrawal Fee) * Security from the Borrower's cash flows via the Spigot and/or from escrowed asset collateral * Programmatically enforced recourse and a FIFO repayment queue * Positions are ERC-721 tokens: transferable (where permitted), auditable, and usable as building blocks for vaults and secondary markets *Not sure what a revolving Line of Credit is? For a TradFi primer, see* [*Investopedia*](https://www.investopedia.com/terms/r/revolvingcredit.asp)*.* --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.creditcoop.xyz/core-concepts/secured-line-of-credit.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.