Corporate Loans - Facility Types (Term vs Revolver facility)

Revolver Facility


• Similar to a credit card

• Daily Transactions

• Full commitment expires on Maturity Date of the facility

• Used for ongoing cash management

• Flexible line of credit


Term Loan facility

• Similar to a Mortgage

• More structured – only one initial borrowing

• Repayment schedule (due in installments)

• For a specific purpose

• Payments reduce commitments

• Cannot re-borrow