Corporate revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations.
[2] A revolving loan provides a borrower with a maximum aggregate amount of capital, available over a specified period of time.
[4] This is often achieved by creating a sublimit within the overall loan, allowing a certain amount of the lenders' commitment to be drawn in the form of these different facilities.
[3] In project finance, revolving credit facilities—commonly known as "revolvers"—are employed to manage short-term liquidity and ensure that critical debt service obligations are met even when operational cash flows are variable.
These fees collectively ensure that funds are available when needed while compensating the lender for maintaining the credit line.