Question
What is a loan facility?
Interesting Question? 
(2) 
(7)
(2) (7)
Answers (1)
4th Dec 2009 by Tom Lindmark
A loan facility is simply a loan of some type that a lender -- usually a bank -- establishes on behalf of a borrower. It might be a term loan for the purchase of assets that has a scheduled amortization or it might be a revolving credit facility that allows the borrower to draw down loans and repay them from a line of credit. The essential nature of a loan facility is that it establishes a commitment on the part of a lender to make available loan funds to a borrower under specific circumstances.
A loan facility is simply a loan of some type that a lender -- usually a bank -- establishes on behalf of a borrower. It might be a term loan for the purchase of assets that has a scheduled amortization or it might be a revolving credit facility that allows the borrower to draw down loans and repay them from a line of credit. The essential nature of a loan facility is that it establishes a commitment on the part of a lender to make available loan funds to a borrower under specific circumstances.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
17th Nov 2009 In Finance
1 Answers | 90 Views
Subjects: loan facility,