Facility Utilization

Facility utilization is the current balance on a revolving credit facility expressed as a percent of its Credit Limit. A line with a $40,000 balance against a $100,000 limit is at 40% facility utilization.

This is distinct from the system-wide Utilization (also called LTV) that Policy Stack shows for your banking system, which divides total policy-loan balance by total cash value. Facility utilization is scoped to one credit line and divides by that line's limit, not by cash value. Policy Stack keeps the two figures labeled separately so they are never mistaken for each other.

Policy Stack reports facility utilization as a factual figure on open facilities — there is no threshold at which a balance is labeled "high" or "low."

Related terms: Credit Limit, Available Credit, Net Cash Value