Meaning of the word "credit facility" in English

What does "credit facility" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

credit facility

US /ˈkrɛdɪt fəˈsɪlɪti/
UK /ˈkrɛdɪt fəˈsɪlɪti/

Noun

a type of loan or credit arrangement that allows a business or individual to borrow money up to a certain limit over a specified period, often with flexible repayment terms

Example:
The company secured a credit facility to fund its expansion plans.
Access to a flexible credit facility can be crucial for small businesses.