Glossary

Drawdown

Drawdown is the act of actually taking the money from a facility you've been approved for — all at once, or in stages as you need it.

2 min read

Take the moneyFrom an agreed facility

Staged or lumpAs the terms allow

Definition

Drawdown is the process of withdrawing funds from an approved loan or facility. Some loans are drawn in a single lump at the start; others, such as a revolving facility, allow multiple drawdowns over time.

In plain terms

Approval and drawdown aren't the same thing — you can be approved for a facility and choose when to actually take the cash.

Why it matters for your company

With flexible facilities you pay interest only from drawdown, so drawing only what you need, when you need it, controls cost. See revolving credit facility.