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Two types of loan facility are commonly utilized: term loan facilities and revolving loan facilities. Under a term loan facility, the lender commits to lend to the borrower a specified amount of money over a set period (the “term”). The period of a corporate term loan is generally between one and five years. The loan may be repaid in instalments (in which case the facility is commonly described as “amortizing”) or through one payment at the end of the facility (in which case the facility is commonly described as having “bullet” repayment terms). Prepayment of the loan is commonly permitted without penalty. A revolving loan facility is like a term loan facility in that it provides a borrower with a maximum aggregate amount of capital, available over a specified period. However, unlike a term loan, the availability period usually extends for almost the entire life of the loan, allowing the borrower to drawdown, repay and re-draw all or part of the loan at its discretion.