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Definition
A committed facility obliges the lender to advance funds up to a limit for an agreed term, provided you meet the conditions. Contrast with an uncommitted facility, which the lender can withdraw at will.
In plain terms
It is money you know will be there. For that certainty you usually pay a commitment fee on the portion you have not drawn.
Why it matters for your company
Committed headroom is what turns a funding gap into a non-event. Credicorp’s revolving credit facility gives you a committed limit to draw on demand.
Related reading
Uncommitted facility
An uncommitted facility is credit the lender <em>may</em> provide but never has to — cheaper than a committed…
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Revolving facility
A revolving facility lets you draw, repay and redraw up to a limit, paying interest only on what you use —…
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Undrawn facility
The undrawn facility is the headroom you have agreed but not yet used — available firepower that often…
Read →Utilisation rate
The utilisation rate is how much of your facility you are using — drawn ÷ limit. Consistently high…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.