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A credit facility agreement details the borrowers responsibilities, loan warranties, lending amounts, interest rates, loan duration, default penalties, and repayment terms and conditions.
A revolving credit facility is a line of credit that is arranged between a bank and a business. It comes with an established maximum amount, and the business can access the funds at any time when needed. The other names for a revolving credit facility are operating line, bank line, or, simply, a revolver.
Loans and credits are different finance mechanisms. While a loan provides all the money requested in one go at the time it is issued, in the case of a credit, the bank provides the customer with an amount of money, which can be used as required, using the entire amount borrowed, part of it or none at all.
Credit facilities are a type of pre-approved loan which allows the borrower to borrow money on an ongoing basis over an extended period of time, rather than applying for a new loan each time the borrower needs more money.
Also known as a loan or credit facility agreement or facility letter. An agreement or letter in which a lender (usually a bank or other financial institution) sets out the terms and conditions (including the conditions precedent) on which it is prepared to make a loan facility available to a borrower.
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A credit facility agreement refers to an agreement or letter in which a lender, usually a bank or other financial institution, sets out the terms and conditions under which it is prepared to make a loan facility available to a borrower. It is sometimes called a loan facility agreement or a facility letter.
Cash credit suits short-term objectives like managing working capital, whereas term loans are better for achieving long-term goals such as expansion or acquiring fixed assets. Interest Rates and Costs: Compare the interest rates and associated costs of both options.

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