Also known as an accordion feature. A feature of some loan agreements that allows the borrower to add a new term loan, tranche, or increase the revolving credit loan commitments under an existing loan facility up to a specified amount under certain terms and conditions. The advantage of this feature is that the increase in the loan amount is pre-approved by the lenders so that the borrower does not have to get the lenders' consent if it increases the loan facility at a later date.

For more information, see Practice Note, Lending: Overview: Incremental Loan Facility.