# Revolving Credit Facility

*Corporate Finance & M&A — Finicade finance glossary*

A revolver is a committed credit line a company can draw, repay and redraw, paying a commitment fee on the undrawn portion. It's the corporate equivalent of an overdraft and the primary liquidity backstop for working capital swings. Companies drawing their revolver in full is a recognised distress signal — it means they doubt the facility will still be there tomorrow.

**Also known as:** revolver, RCF, line of credit

**Related terms:** [Liquidity](https://finicade.com/glossary/liquidity), [Working Capital](https://finicade.com/glossary/working-capital), [Covenant](https://finicade.com/glossary/covenant), [Commercial Paper](https://finicade.com/glossary/commercial-paper), [Bridge Loan](https://finicade.com/glossary/bridge-loan)

Source: https://finicade.com/glossary/revolving-credit-facility