What is the bank facility?
A facility is a place or organisation that offers lines of credit and borrowed amounts to people interested in a credit card or line of credit, like an overdraft. The thing is, a facility can be anything, including large companies that offer their own store reward credit cards. However, a bank facility is when a line of credit is owed or offered to the public. When you are part of a bank facility, then you have to pay a type of fee.
Specifically, a bank facility fee is a special arrangement with a bank where a company or organisation offers to borrow money up to a certain amount. The fee is directly paid to the Reserve Bank of Australia. The amount varies depending on the line of credit or total borrowed amount but is usually a low percentage that is manageable and charged directly to that same line of credit or card statement.
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Bank Facility Conclusion
A bank facility is a place that offers a line of credit to borrowers. This line of credit does not have a sales tax, but there are a few fees to consider, including the annual bank facility fee.