the revolving credit agreement is that the bank promises to lend a certain amount to the enterprise, and if the enterprise fails to lend enough, it will pay a certain commitment fee for the rest.
the difference between credit limit and revolving credit agreement: in the case of credit limit, banks do not have the legal obligation to provide loans for enterprises within the loan limit; For the revolving credit agreement, within the validity period of the agreement, as long as the total loan amount of the enterprise does not exceed the maximum limit, the bank must meet the loan requirements put forward by the enterprise at any time. Enterprises need to pay a commitment fee to the bank for the unused part of the loan limit to enjoy the revolving credit agreement.