Okuzeka
Finance & Banking vocabulary · Loans & Credit

Revolving credit facility

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, revolving credit facility means: A facility allowing repeated borrowing and repayment within an agreed limit during its availability period.

In Turkish: rotatif kredi imkânı

How it is used

Abbreviated RCF; repaid amounts can generally be drawn again subject to the agreement.

Example sentences

  1. The company repaid its revolving credit facility after receiving seasonal sales proceeds.

    The facility accommodates a changing short-term funding need.

  2. A later inventory purchase required another draw on the revolving credit facility.

    Borrowing again after repayment illustrates the revolving feature.

Common collocations

  • revolving credit facility limit
  • draw on an RCF
  • credit facilityAn arrangement in which a bank agrees to lend a company up to a set amount, which the company can draw on as needed under agreed terms.
  • working capitalThe money a business has available for its daily operations, calculated as current assets minus current liabilities.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.