Committed Facility

What is a 'Committed Facility'

A committed facility is a credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company.

BREAKING DOWN 'Committed Facility'

In committed facilities, the borrowing companies must meet specific requirements set forth by the lending institution in order to receive the stated funds.

RELATED TERMS
  1. Lending Facility

    A mechanism that central banks use when lending funds to primary ...
  2. Facility Operations

    Includes all the services required to ensure a facility will ...
  3. Credit Facility

    A type of loan made in a business or corporate finance context. ...
  4. Uncommitted Facility

    An agreement between a lender and a borrower whereby the lender ...
  5. Facility

    A formal financial assistance program offered by a lending institution ...
  6. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. ...
Related Articles
  1. Economics

    How Does a Credit Facility Work?

    A credit facility is a loan or collection of loans a business or corporation takes to generate capital over an extended period of time.
  2. Economics

    Understanding Capitalized Interest

    Capitalized interest is associated with debt used to make or construct a depreciable asset.
  3. Stock Analysis

    What Would Be Of BreitBurn Energy This Summer?

    This Spring, BreitBurn Energy Partners' banks will take a closer look at its credit facility and redetermine its borrowing base.
  4. Trading Strategies

    Eyeing a Loan? Consider Skipping the Banks

    Peer-to-peer lending platforms, such as Lending Tree, Lending Club and Prosper, offer borrowers newfound leverage. Here's a look.
  5. Retirement

    Pros and Cons of "Small-Home" Care Facilities

    Intimate alternatives to traditional large nursing homes are gaining popularity. Could one of them be right for you or a member of your family?
  6. Retirement

    How to Choose a Residential Care Home

    When an elderly loved one needs supervision, a residential care facility can be the closest thing to living at home.
  7. Credit & Loans

    What Goldman Sachs’s Online Lending Means For Banking

    Recently Goldman Sachs has announced its entry into the online lending space. Most commonly known as an investment bank, Goldman’s newest venture may provide insight into the future of online ...
  8. Fundamental Analysis

    Explaining Capitalized Cost

    A capitalized cost is an expense associated with a fixed asset that is added to the basis of that asset and expensed over its depreciable life.
  9. Credit & Loans

    Understanding Credit Risk

    Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt.
  10. Economics

    Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.
RELATED FAQS
  1. How does a credit crunch occur?

    A credit crunch occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to ... Read Answer >>
  2. What is the difference between a green field and a brown field investment?

    Read about the advantages and disadvantages of pursuing green field or brown field investments in the foreign direct investment, ... Read Answer >>
  3. What is the most important "C" in the Five Cs of Credit?

    Learn how the five C's of credit affect new credit application decisions, and understand how a lender analyzes each aspect ... Read Answer >>
  4. Why do banks use the Five Cs of Credit to determine a borrower's credit worthiness?

    Learn the five Cs of credit, why they are important and how banks use them to understand and mitigate risks when making loans ... Read Answer >>
  5. Why do high profiting sales mitigate credit risk?

    Learn more about credit risk in loaning to individuals and businesses. Understand how credit risk is determined and the impact ... Read Answer >>
  6. What is the difference between the Five Cs of Credit and credit rating?

    Learn the difference between the five C's of credit and credit rating and how they are used together by banks and finance ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center