revolving fund

revolving fund definition - business

revolving fund

An account that recycles funds. For example, a public authority operates a fund that makes mortgage loans to small business owners. Principal and interest payments from borrowers are credited to the fund and used to make additional loans.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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