is credit facility used in debt 
a credit facility is a way for a company to take on debt it s an agreement between a company and a lender that should the company need funds it can draw on the facility and borrow money just because a company has a credit facility doesn t mean it has incurred debt a credit facility simply grants the company the right to take on loan funds the bottom linea credit facility is an agreement between a lender and a borrower that allows for greater flexibility than traditional loans types of these include revolving loan facilities retail credit facilities like credit cards committed facilities letters of credit and most retail credit accounts a credit facility often allows a company more control over the amount and timing of debt as well as the use of funds than other types of lending agreements on the downside a credit facility usually comes with debt covenants additional maintenance fees withdrawal fees and is more difficult to secure credit facilities terms and particulars as with most loans depend on the financial condition of the borrowing company and its credit history 