Revolving credit facility: Difference between revisions
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imported>Doug Williamson (Expand definition.) |
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== See also == | == See also == | ||
* [[Committed]] | |||
* [[Non-utilisation fee]] | * [[Non-utilisation fee]] | ||
* [[Overdraft]] | * [[Overdraft]] | ||
Revision as of 16:21, 12 June 2021
(RCF).
A facility which permits the borrower to draw down and repay amounts at the borrower's discretion for a specified period of time.
An RCF is similar in this respect to an overdraft.
However, RCFs are normally for much larger amounts than overdrafts, and RCFs - unlike overdrafts - are not usually repayable on demand.
Another important difference is that RCFs, unlike overdrafts, generally charge non-utilisation fees for the undrawn portion.
