Facility Utilization
Short definition
Facility utilization is the share of a revolving or general limit that is actually drawn. Low use wastes commitment fee; very high use consumes liquidity headroom and bank appetite.
Detailed explanation
On an RCF, utilization is read with the cash buffer. If part of the limit is blocked by guarantees or LCs, “empty limit” is not cash-drawable headroom.
A bank may treat persistent 90%+ use as a de facto term loan; renewal and covenant talks harden accordingly.
Why it matters for the CFO
Treasury trades fee (idle commitment) against flexibility (undrawn). In a stress week a blocked limit inflates reported headroom.
How it is calculated
Kullanım = Kullanılan bakiye / Toplam taahhüt (tavan)
Variables in the formula
- Drawn: Drawn balance
- Commitment: Committed limit
How to read it
40% utilization means 60% headroom — not before blocked amounts and covenant caps are netted. There is no universal “right use”; season, cash volatility and lender policy set it.
Numerical example
Limit 200 mn TL, drawn 130 mn TL → utilization = 130/200 = 65%; apparent undrawn headroom 70 mn TL (if nothing is blocked).
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.