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Definition of 'Revolving Loan Facility'
A financial institution that allows the borrower to obtain a business or personal loan where the borrower has the flexibility to decide how often they want to withdraw from the loan and at what time intervals. A revolving loan facility allows a company to drawdown, repay and re-draw loans advanced to it. This type of loan is considered a flexible financing tool due to its repayment and re-borrowing flexibility.
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Investopedia explains 'Revolving Loan Facility'
A loan from this facility is provided over a specific period of time, usually one, three or six months. It is not considered a term loan because, during this allotted period of time, the facility allows the borrower to repay or take the loan out again. It is also different from a fixed monthly payment loan because a revolving loan lets borrowers use as much of the credit as is available and only pay interest on what they have used.
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Search results for 'Revolving Loan Facility'
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http://www.investopedia.com/articles/pf/09/small-business-credit-cards.asp
... a credit card provides you with a revolving line of ... loan once you have used and repaid
your first loan. ... purchases such as equipment leasing and facility costs. ...
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