What is a drawdown period on a facility?

2 min read

Draw windowWhen you can take it

RedrawOn revolving lines

Idle = freeUndrawn costs nothing

What it means

Drawdown is the act of taking funds from a loan or facility that has been approved. On a revolving credit facility, the drawdown period runs for the life of the facility: you draw what you need, repay it, and redraw later up to your limit — like a business version of a flexible line. On a term loan, drawdown may be a single event at the start.

What this means for your company

The value of a facility is partly in what you don't use. An undrawn limit is standby liquidity for a late invoice or a sudden order, and with interest charged only on the drawn balance, sitting unused it costs little or nothing. Credicorp Flex works this way — draw for a gap, repay when the cash lands, redraw next time. Size the right limit with the working-capital calculator.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Do I pay interest on money I have not drawn?

On most revolving facilities, no — interest applies only to the balance you have actually drawn. Some facilities carry a small non-utilisation or arrangement fee; always check the terms.

Can I redraw after repaying?

On a revolving facility, yes — that is the point. You can draw, repay and redraw up to your limit as often as you need within the facility term. A term loan usually cannot be redrawn once repaid.