Credit Facility definition: Copy, customize, and use instantly
Introduction
The term "Credit Facility" refers to a financial arrangement between a borrower and a lender that allows the borrower to access funds under agreed terms. It is essential for managing liquidity, funding operations, and supporting long-term financial planning.
Below are various examples of how "Credit Facility" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Credit Facility" as a revolving line of credit
This definition ties "Credit Facility" to flexible borrowing options.
"Credit Facility" means a revolving line of credit that allows the borrower to draw, repay, and reborrow funds up to a specified limit during the availability period.
Definition of "Credit Facility" as a term loan agreement
This definition connects "Credit Facility" to structured long-term financing.
"Credit Facility" refers to a loan agreement under which the lender provides a fixed principal amount to the borrower, repayable over a defined term with scheduled payments.
Definition of "Credit Facility" as a syndicated loan arrangement
This definition links "Credit Facility" to multiple lenders.
"Credit Facility" means a lending arrangement involving multiple financial institutions that collectively provide funding under agreed-upon terms and conditions.
Definition of "Credit Facility" as a secured borrowing arrangement
This definition applies "Credit Facility" to collateral-backed loans.
"Credit Facility" refers to a financing agreement where the borrower's obligations are secured by pledged assets, such as real estate, inventory, or receivables.
Definition of "Credit Facility" as a liquidity support mechanism
This definition ties "Credit Facility" to short-term funding needs.
"Credit Facility" means an arrangement that provides immediate access to funds to meet liquidity demands, including cash flow shortfalls or unexpected expenses.
Definition of "Credit Facility" as a capital expenditure loan
This definition connects "Credit Facility" to asset financing.
"Credit Facility" refers to a funding agreement used to finance capital investments, such as equipment purchases, infrastructure development, or expansion projects.
Definition of "Credit Facility" as a bridge financing tool
This definition links "Credit Facility" to interim funding solutions.
"Credit Facility" means a short-term loan that provides temporary financing until long-term funding sources become available.
Definition of "Credit Facility" as a working capital loan
This definition applies "Credit Facility" to operational funding.
"Credit Facility" refers to a loan arrangement designed to support the borrower's day-to-day operational expenses and short-term obligations.
Definition of "Credit Facility" as a standby line of credit
This definition ties "Credit Facility" to emergency funding options.
"Credit Facility" means a pre-approved line of credit that can be drawn upon as needed in case of unexpected financial needs.
Definition of "Credit Facility" as a subordinated loan
This definition connects "Credit Facility" to different debt structures.
"Credit Facility" refers to a loan agreement where the lender's claim ranks below other creditors in case of default or liquidation.
Definition of "Credit Facility" as a committed facility
This definition links "Credit Facility" to guaranteed lending availability.
"Credit Facility" means a legally binding agreement under which a lender is obligated to provide funding, subject to agreed-upon conditions.
Definition of "Credit Facility" as an uncommitted facility
This definition applies "Credit Facility" to discretionary lending.
"Credit Facility" refers to a funding arrangement where the lender has no obligation to advance funds but may do so at its discretion.
Definition of "Credit Facility" as a multi-currency loan
This definition ties "Credit Facility" to international transactions.
"Credit Facility" means a financing agreement that allows the borrower to access funds in multiple currencies, subject to exchange rate adjustments.
Definition of "Credit Facility" as an asset-based loan
This definition connects "Credit Facility" to borrowing based on asset values.
"Credit Facility" refers to a loan arrangement where the borrowing capacity is determined by the value of collateralized assets.
Definition of "Credit Facility" as a mezzanine financing option
This definition links "Credit Facility" to hybrid financing structures.
"Credit Facility" means a financing structure that combines elements of both debt and equity, often used for business expansion or acquisitions.
Definition of "Credit Facility" as an acquisition financing tool
This definition applies "Credit Facility" to business purchases.
"Credit Facility" refers to a loan agreement specifically designed to fund the purchase of another company or its assets.
Definition of "Credit Facility" as a letter of credit facility
This definition ties "Credit Facility" to trade finance.
"Credit Facility" means a financial arrangement that enables the issuance of letters of credit to guarantee payment obligations.
Definition of "Credit Facility" as a factoring facility
This definition connects "Credit Facility" to receivables financing.
"Credit Facility" refers to a lending arrangement where advances are provided based on the value of outstanding invoices or accounts receivable.
Definition of "Credit Facility" as a debtor-in-possession financing
This definition links "Credit Facility" to bankruptcy proceedings.
"Credit Facility" means a loan provided to a company undergoing bankruptcy reorganization to fund continued operations.
Definition of "Credit Facility" as a construction loan
This definition applies "Credit Facility" to real estate development.
"Credit Facility" refers to a short-term loan used to finance construction projects, typically disbursed in stages.
Definition of "Credit Facility" as an export credit facility
This definition ties "Credit Facility" to international trade.
"Credit Facility" means a financing arrangement designed to support businesses in exporting goods or services by providing necessary working capital.
Definition of "Credit Facility" as a leveraged loan facility
This definition connects "Credit Facility" to high-risk lending.
"Credit Facility" refers to a loan provided to a borrower with a high debt load, often used in leveraged buyouts or recapitalizations.
Definition of "Credit Facility" as a sustainability-linked loan
This definition links "Credit Facility" to ESG performance.
"Credit Facility" means a financing arrangement where loan terms, including interest rates, are linked to the borrower's achievement of environmental, social, and governance (ESG) targets.
Definition of "Credit Facility" as a net asset value-based loan
This definition applies "Credit Facility" to fund financing.
"Credit Facility" refers to a loan provided to investment funds based on the net asset value of their portfolio holdings.
Definition of "Credit Facility" as a bullet repayment loan
This definition ties "Credit Facility" to single-payment loans.
"Credit Facility" means a loan arrangement where the principal is repaid in full at the end of the loan term rather than through periodic installments.
Definition of "Credit Facility" as a demand loan facility
This definition connects "Credit Facility" to repayable-on-demand loans.
"Credit Facility" refers to a loan agreement where the lender has the right to request repayment of the outstanding amount at any time.
Definition of "Credit Facility" as a mortgage-backed credit line
This definition links "Credit Facility" to real estate financing.
"Credit Facility" means a lending arrangement secured by real estate assets, with borrowing limits based on property value.
Definition of "Credit Facility" as a hybrid credit facility
This definition applies "Credit Facility" to mixed-structure loans.
"Credit Facility" refers to a financial arrangement that combines elements of both revolving and term loan facilities within a single agreement.
Definition of "Credit Facility" as an overdraft protection facility
This definition ties "Credit Facility" to checking account coverage.
"Credit Facility" means a short-term borrowing arrangement that allows an account holder to withdraw more than their available balance, up to a pre-approved limit.
Definition of "Credit Facility" as a supplier financing facility
This definition connects "Credit Facility" to trade credit.
"Credit Facility" refers to a loan arrangement designed to finance the purchase of goods and services from suppliers, often with extended repayment terms.
Definition of "Credit Facility" as a club deal loan facility
This definition links "Credit Facility" to mid-sized syndicated loans.
"Credit Facility" means a loan provided by a small group of lenders under a coordinated but less formal structure than a fully syndicated loan.
Definition of "Credit Facility" as an unfunded credit commitment
This definition applies "Credit Facility" to unused lending agreements.
"Credit Facility" refers to a loan arrangement where the lender commits to providing funds, but no amounts are initially disbursed until the borrower draws upon the facility.
Definition of "Credit Facility" as a special purpose vehicle (SPV) financing facility
This definition ties "Credit Facility" to structured finance.
"Credit Facility" means a lending arrangement designed to provide funding to an SPV, typically for securitization or asset-backed transactions.
Definition of "Credit Facility" as a factoring-based borrowing facility
This definition connects "Credit Facility" to invoice financing.
"Credit Facility" refers to a funding arrangement where advances are provided based on outstanding invoices, with repayment linked to future receivables collection.
Definition of "Credit Facility" as an escrow-backed credit line
This definition links "Credit Facility" to secured transactions.
"Credit Facility" means a loan facility backed by escrowed funds that serve as collateral for the borrowing arrangement.
Definition of "Credit Facility" as a receivables purchase facility
This definition applies "Credit Facility" to structured receivables financing.
"Credit Facility" refers to a financing agreement in which lenders provide funding by purchasing accounts receivable at a discount.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.