A Credit facility is a type of loan made in a business or corporate finance context. It allows the borrowing business to take out money over an extended period of time rather than reapplying for a loan each time it needs money. This can work in two ways: the company can take out a credit facility with a number of different banks or other lenders, and draw down on the loans as needed; or the company can take out one loan from one lender, which is then repaid over time via repayments made by the business. The latter option is more common, but the former can be useful if your business needs a large amount of money at once.A credit facility is essentially a line of credit that allows you to take out money from one lender instead of applying for each loan separately. This makes it easier for businesses with fluctuating cash flow or those that need large amounts of capital at once, such as property developers who need to buy land or materials before building anything.
