Revolving credit facility

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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