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

For international trade, a 'credit-facility' can provide businesses with the necessary funds to manage import/export activities effectively. An international trade manager might explain, 'Utilizing a credit-facility helps smooth out cash flow fluctuations due to seasonal trade patterns.'

Practice Scenarios

Startup

Scenario:

Our startup is in an expansion phase, but we need capital to support this growth. What could be one potential solution?

Response:

Securing a credit facility could give us the necessary capital to handle expansion costs.

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.