According to Thomson Reuters LPC, U.S. companies have access to $787 billion in revolving lines of credit. This is down significantly from 2011's $1.28 trillion. The reduction is due in large part to companies holding back on requests for credit lines due to the uncertainty of the now-passed 2012 elections, as well as the looming fiscal cliff. Many companies that have access to the bond market are choosing to issue bonds rather than borrow money, since the demand for corporate bonds is high and interest rates are low. Revolving lines of credit, however, have certain advantages over bonds. Once the fiscal cliff is resolved, it's likely that companies will once again pursue loans and lines of credit.
Learn more at CFO.com.
Read more Finance Watch articles.
Photo credit: Shutterstock