Revolving Credit Agreements Revolving Credit Agreement -A formal, legal commitment to extend credit up to some maximum amount over a stated period of time Agreements are frequently for three years The actual notes are usually 90 days, but the company can renew them per the agreement Most useful when funding needs are uncertain Many are set up so at maturity the borrower has the option of converting into a term loan 21-621-6 Revolving Credit Agreements Agreements are frequently for three years. The actual notes are usually 90 days, but the company can renew them per the agreement. Most useful when funding needs are uncertain. Many are set up so at maturity the borrower has the option of converting into a term loan. Revolving Credit Agreement -- A formal, legal commitment to extend credit up to some maximum amount over a stated period of time