credit facilities

A credit facility is a pre-approved loan arrangement provided by a bank or lender that allows a borrower to access funds up to a certain limit whenever needed. It acts like a financial safety net, giving flexibility to borrow and repay repeatedly without applying for a new loan each time. Common examples include overdraft accounts, credit lines, and revolving loans. The borrower pays interest only on the amount borrowed, not the entire facility limit. This setup helps manage cash flow, finance projects, or cover unexpected costs efficiently while maintaining ongoing access to funds.