Committed Facility

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DEFINITION of 'Committed Facility'

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

INVESTOPEDIA EXPLAINS '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. Credit Agreement

    A legal contract in which a bank arranges to loan a customer ...
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  3. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
  4. Swingline Loan

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  5. Uncommitted Facility

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  6. Facility

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