What Is a Credit Facility?
A credit facility is a type of loan made in a business or corporate finance context. It allows the borrowing business to take out money over an extended period of time rather than reapplying for a loan each time it needs money. In effect, a credit facility lets a company take out an umbrella loan for generating capital over an extended period of time.
Various types of credit facilities include revolving loan facilities, committed facilities, letters of credit, and most retail credit accounts.
