BUSINESS FINANCE GLOSSARY

Revolver

Revolving Credit Facility

DEFINITION

A committed or uncommitted facility allowing repeated borrowings up to an approved limit.

What does Revolver mean?

A committed or uncommitted facility allowing repeated borrowings up to an approved limit. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.

PRACTICAL EXAMPLE

Revolver in context

A seasonal business uses its revolver during peak inventory months.

Why it matters in financing

Revolver can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.

Related business finance terms

Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.