What is a facility fee on a revolver?
A revolving facility account is a revolving line of credit that never ends. There is not a term or date where the amounts need to be paid or closed. Instead, a facility fee on a revolver is a fee that changes annually. While most people pay this fee annually, you can charge it to your account monthly or fortnightly, depending on what your lender or banking institute.
A revolving facility fee is charged on the entire amount of the revolving commitment, even if the amount is used or not. Meaning, that you can have an open line of credit where not a cent has been taken out, but the annual facility fee is charged to your account. It is a maintenance fee that takes care of the open account.
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Facility Fee Revolver Conclusion
A revolving line of credit is one that is open indefinitely. There is no exact time or date that the line of credit needs to be fully paid and closed. These, though, do accumulate fees, including the annual facility fee, which is charged and paid directly on the line of credit.