How Do You Spell DUFAC?
Pronunciation: [djˈuːfak] (IPA) 
Correct spelling for the English word "DUFAC" is [djˈuːfak], [djˈuːfak], [d_j_ˈuː_f_a_k] (IPA phonetic alphabet).
Pronunciation: [djˈuːfak] (IPA)
Correct spelling for the English word "DUFAC" is [djˈuːfak], [djˈuːfak], [d_j_ˈuː_f_a_k] (IPA phonetic alphabet).
DUFAC, short for "Debts under the Fixed Short Term Facilities" refers to a financial term used in corporate finance and banking. It is a type of short-term financing facility that corporations and businesses utilize to raise funds for various immediate needs or operational expenses.
DUFAC facilities are typically agreed upon between the borrowing entity and the lending institution, such as a bank. These facilities are characterized by their fixed-term duration, meaning that the funds provided must be repaid within a predetermined period, usually anywhere between three to twelve months.
The borrowed amount under DUFAC facilities is often secured against the assets or specific revenue streams of the borrowing entity, which serves as collateral or security for the lender. This provides a level of protection for the lending institution in case of default or non-repayment.
DUFAC facilities are especially useful for businesses facing temporary cash flow shortages or those requiring immediate funds for investments, inventory purchases, or the settlement of short-term liabilities. They offer flexibility and convenience, allowing companies to meet their financial obligations without resorting to long-term loans or disrupting their capital structure.
Overall, DUFAC facilities play a crucial role in corporate finance by providing a short-term funding option for businesses, stimulating liquidity, and supporting their day-to-day operational activities.
