12 Jul 2022

What are the examples of facilities?

Redraw Facility vs Offset Account

Before you can sign up for a loan or a facility, it is good to have an understanding of what these are. For instance, a facility is a type of line of credit that you can borrow from a company or organisation. This type of facility is unique because it is revolving. Your line of credit in a credit facility never ends, not until you pay the entire amount due and close the account.

Some common examples of facilities are pre-approved loans and credit cards, credit cards, retail credit cards, and letters of credit. It is more common to take out a loan compared to the number of facilities. Both have added interest. However, the interest on a facility is usually a lot more, almost double that of a loan.

When taking out a facility or borrowed amount, you will need to pay fees, including application fees and an annual maintenance fee referred to as the annual credit facility fee. This is a percentage of the total line of credit. Mortgage House experts are knowledgeable on dozens of types of loans and their fees. Contact one today to discuss potential loans and their benefits. 

Facility Examples Conclusion

A credit facility is a unique idea that some people have agreed to. These credit facilities are usually credit cards with revolving and ever-changing lines of credit. The lines of credit change and have a higher interest rate compared to personal, car, home, and business loans.

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