What aspect of a revolving credit arrangement allows a company to borrow again without reapplying after paying off the debt?

The aspect of a revolving credit arrangement that allows a company to borrow again without reapplying after paying off the debt is continuous availability. This feature is fundamental to revolving credit lines, where once a borrower pays back the borrowed amount, they can immediately access those funds again up to the credit limit without undergoing a new application process.

This continuous cycle of borrowing and repayment makes revolving credit highly flexible and convenient for businesses that may need to manage fluctuating cash flow. Companies can use the credit as needed, allowing them to adapt quickly to expenses or opportunities without the delays and complications of seeking new financing each time.

While options like flexible payments, quick access, and renewability refer to important characteristics of credit products, they do not specifically address the core functionality of being able to draw funds repeatedly without reapplication, which is the hallmark of continuous availability in a revolving credit structure.