Revolver / revolving credit

(1) A bank credit line where the borrower has no set repayment date for specific drawdowns. Customers' outstanding balances are permitted to fluctuate based on their decisions to borrow and repay, up to a limit established by the bank. The facility is generally drawn in minimum tranches for specific periods which is available during the commitment period. Used for working capital and bridging/project finance and in most syndicated transactions.
(2) In trade transactions a credit automatically reinstated after each drawing or upon receipt of authorisation from DC issuing bank, with limits as to the duration of the facility and as to the (cumulative or non-cumulative) amount involved for each drawing.