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Definition
The undrawn facility is the difference between your agreed limit and the amount currently drawn. On a committed line it usually attracts a non-utilisation fee.
In plain terms
It is your reserve tank — money you can call on the same day without a fresh application.
Why it matters for your company
Keeping sensible undrawn headroom is cheap insurance against a shock. Track it via your utilisation rate. A Credit Corp facility lets you keep headroom on tap and only pay interest on what you draw.
Related reading
Committed facility
A committed facility is credit the lender is legally bound to provide up to an agreed limit — certainty you…
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Utilisation rate
The utilisation rate is how much of your facility you are using — drawn ÷ limit. Consistently high…
Read →Revolving facility
A revolving facility lets you draw, repay and redraw up to a limit, paying interest only on what you use —…
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Drawdown
Drawdown is the act of taking money from a loan or credit facility that has already been agreed — accessing…
Read →Funding for UK limited companies
Credit Corp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.