Revolving Credit Facilities | Key Differences | How it Works? | Examples

In this video on Revolving Credit, we are going to talk about What do we mean by Revolving Credit Facilities? Revolving Credit Facility vs Credit Cards – Key Differences, Revolving Credit Facilities Example and many more... 𝐖𝐡𝐚𝐭 𝐝𝐨 𝐰𝐞 𝐦𝐞𝐚𝐧 𝐛𝐲 𝐑𝐞𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐂𝐫𝐞𝐝𝐢𝐭 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐢𝐞𝐬? ----------------------------------------------------------------------------------- This credit is where the customer pays a committed fees to the financial institute to borrow cash, and then he is allowed to use the funds when needed. 𝐇𝐨𝐰 𝐑𝐞𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐂𝐫𝐞𝐝𝐢𝐭 𝐖𝐨𝐫𝐤𝐬? ----------------------------------------------------- 1. The small company owner will talk to the bank about a credit facility. And then the bank will ask for the mortgage. Here inventories or accounts receivables act as mortgages. 2. Bank hands the company owners a revolving account where there is the per-approved limit. 𝐊𝐞𝐲 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐂𝐫𝐞𝐝𝐢𝐭 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐲 𝐯𝐬 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝 ---------------------------------------------------------------------------------------------- There are many differences. Let’s take a look at them one by one – 1. In the case of credit card facility, the person needs to carry it. Whereas in the case of revolving credit facilities, the person doesn’t need to carry any card. 2. The fees charged for revolving credit facilities is less than the fees charged for credit card facility. 3. In the case of revolving credit facilities, the person doesn’t need to make any transaction. Whereas in the case of the person needs to make a purchase. 4. Flexibility in terms of credit is much more in revolving credit facilities than a credit card. 5. He or She can get the money directly into her business account for whatever reason she needs it. To know more about 𝐑𝐞𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐂𝐫𝐞𝐝𝐢𝐭, go to this link here: https://www.wallstreetmojo.com/revolv... Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe -    / @wallstreetmojo