Credit facilities are a type of pre-approved loan which allows the borrower to borrow money on an ongoing basis over an extended period of time, rather than applying for a new loan each time the borrower needs more money. The borrower can access up to a certain amount, and can borrow when they need funds, much like how an individual uses a consumer credit card. Credit facilities are generally only made in a business or corporate finance context. Types of credit facilities include committed and uncommitted credit facilities, and revolving credit facilities, among others.
[Last updated in November of 2021 by the Wex Definitions Team]