Revolving credit facility

(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.

See also

• Committed
• Credit
• Facility
• Non-utilisation fee
• Overdraft
• Revolving borrowing facility
• Revolving loan
• Rollover
• Standby credit facility
• Swingline