credit-facility

Vocabulary Word

Definition

A 'credit facility' is an agreement between a business and a bank that lets the business borrow up to an agreed amount of money, to be paid back later. It's like a credit card, but often for a bigger amount.

Examples in Different Contexts

In corporate finance, 'credit-facility' refers to a loan arrangement for businesses to finance their operations or capital expenditures. A CFO might discuss, 'Securing a flexible credit-facility is crucial for our company's growth and operational flexibility.'

Practice Scenarios

Tech

Scenario:

We've been encountering a cash flow issue with the increased demand for our product. What's the best approach to resolve such an issue?

Response:

A digital credit facility could provide the quick and flexible funding we need to manage cash flow.

Impact

Scenario:

The cost associated with transitioning to eco-friendly manufacturing methods is high. How can we alleviate this?

Response:

Establishing a credit facility for financing our transition to sustainable practices might help.