How does the tenor work if the SME is making multiple draw downs?
For a Revolving Credit Facility (RCF), each drawdown must be fully repaid within the original facility period. The tenor of each new drawdown is limited to the remaining time left on the facility.
Example:
An SME gets an RCF on 1 January 2019 with a 12-month tenor (ending 31 December 2019).
First drawdown: Taken on 1 January 2019 with a 12-month repayment period (due by 31 December 2019).
Second drawdown: Taken on 1 July 2019, but since the facility ends in 6 months, the drawdown must be repaid by 31 December 2019 (tenor capped at 6 months).
Key Points:
All drawdowns must be repaid within the facility period.
Later drawdowns have shorter repayment periods, depending on the remaining time.
No drawdown can extend beyond the facility’s end date.
This setup ensures SMEs can access funds flexibly while staying within the agreed financing period