Abstract
Since bank credit lines are a major source of corporate funding, we examine the determinants of credit line usage with a comprehensive database of Spanish corporate credit lines. A line�s default status is a key factor driving its usage, which increases as a firm�s financial condition worsens. Line usage decreases by roughly 10% for each year of its life. Lender characteristics, such as the number and length of a firm�s banking relationships, are found to affect a firm�s usage decisions, and credit line usage is found to be inversely related to macroeconomic conditions
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