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Bank: open credit facilities
 

 

These are granted by a bank to a customer to enable him to draw money, or cash cheques, at other branches of that bank, or other specified banks, up to a prearranged limit. Such facilities arc valuable to people who are obhged to travel widely in thc course of their work or who, for some other reason, may need to spend some time in another part of the country or abroad. Short-term problems are now more frequently solved by cheque card or the cash dispenser card, but business customers may often want to make greater withdrawals than these cards make sible. Alternatives to such facilities are letters of credit or, for foreign travel, traveller's cheques, though it is possible to arrange for credit facilities at a specified foreign bank. This would be arranged between banks and might be preferable for extended business travel abroad.

 

Reference: Oxford Press Dictonary of Economics, 3rd edt.