What does loan revolving credit mean? The details are as follows:
Revolving credit loan is an indirect financing method with great flexibility. A formal commitment made by a lending institution to a borrower to provide a certain amount of loans within a certain period of time (usually 1-8 years). The borrower can use it at any time or return it in advance. This credit method provides a reliable guarantee for debts that are expected to occur but have not yet occurred. Therefore, it can be regarded as a kind of debt insurance for the buyer of M&A transaction to apply for a loan. As long as the M&A transaction is settled and immediate payment is required, the buyer can withdraw the required funds in time.
Revolving credit loan has great flexibility, which can not only repay the loan in advance, but also continue to ask for the loan as long as the revolving credit does not expire, without special restrictions. If the borrower doesn't need to use all the loans, he can only withdraw the needed part and then pay 0. 1.25% ~ 0.75% of the fixed part.
Related introduction: