Committed facility

A committed facility gives greater funding certainty than an uncommitted line, under which the lender retains more discretion to refuse advances. The commitment is still subject to contractual limits, expiry dates, covenants and drawdown conditions; it is not unconditional cash. A business may pay a commitment fee for undrawn availability. Review the agreement when assessing liquidity and refinancing exposure, including whether conditions could prevent drawing at the time funds are needed. Distinguish the facility limit from the amount actually borrowed and from cash already held.