DEFINITION of 'Facility'

A formal financial assistance program offered by a lending institution to help a company that requires operating capital. Types of facilities include overdraft services, deferred payment plans, lines of credit, revolving credit, term loans, letters of credit and swingline loans. A facility is essentially another name for a loan taken out by a company.


Facilities can be committed, meaning that they specify a precise amount of funds that will be provided, or uncommitted, meaning that the lender has not agreed to provide a specified amount of funding. Different types of facilities are available to meet different business needs, such as seasonal financing and the payment of creditors.

  1. Committed Facility

    A credit facility whereby terms and conditions are clearly defined ...
  2. Swingline Loan

    A loan that grants institutions access to large amounts of cash ...
  3. Uncommitted Facility

    An agreement between a lender and a borrower whereby the lender ...
  4. Credit Sleeve

    A form of credit agreement, backed by physical assets, where ...
  5. Term Securities Lending Facility ...

    A lending facility through the Federal Reserve that allows primary ...
  6. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
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