Financial Poise

Credit Facility

  • June 28, 2022
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A credit facility refers to an arrangement by which a borrower is pre-approved for a loan, where the terms of the loan are agreed upon before the lender actually loans any money. Most companies in the United States other than small businesses have one or more credit facilities. A credit facility commonly consists of a line of credit and a term loan. To learn more, read Business Borrowing Basics – Negotiating A Loan Agreement.