Loan or credit

Credit facilities and loans differ in that whereas a credit arrangement allows you to borrow a variable sum of money as and when you need it, a loan provides you with a single fixed amount

Credit facilities:

  • You can draw down as much money as you need, up to the set credit limit, at any time and for the agreed term or duration.
  • The borrowed money has to be repaid with interest and fees by the agreed due date.
  • You can repay some or all of the borrowed money before the due date. It may then be possible to borrow that repaid amount again, depending on the terms and conditions.
  • Money drawn down from a credit facility is usually paid into a linked current account, from which repayments are also debited.


  • The agreed sum is provided as a single payment at the start of the loan.
  • The money borrowed has to be repaid with interest and fees by the due date stated in the loan agreement.


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