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Definition
A non-utilisation fee (or commitment fee) is charged on the portion of a committed facility you have not drawn, typically a fraction of a percent. The lender reserves capital to stand behind your limit, and the fee compensates it. It is the price of flexibility — having credit ready even when unused.
In plain terms
You pay a little to keep the tap available even while it is off. Handy for standby funding, but wasteful on headroom you never touch.
Why it matters for your company
Size a committed facility to what you realistically need so you are not paying for idle headroom. See revolving facility interest and arrangement fee.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Related reading
Revolving facility interest
Revolving facility interest is charged only on the amount you have drawn, not the full limit, usually…
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Arrangement fee
An arrangement fee is a one-off charge a lender makes for setting up a loan or facility — often a percentage…
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Commitment fee
A commitment fee pays a lender for agreeing to hold funds available for you, charged whether or not you draw…
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Credit utilisation
Credit utilisation is the proportion of your available credit that you are actually using — a facility drawn…
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.