When a company has a deal with a bank lender that allows access to short-term funds,this is called:
A) a debt facility.
B) a credit facility.
C) a debt provision.
D) a liability provision.

Question

Quizplus · Accepted Answer

This is called a credit facility, as it provides access to short-term funds from a bank lender. A debt facility typically refers to longer-term loans, while debt and liability provisions refer to accounting measures related to debt.

When a Company Has a Deal with a Bank Lender