A revolving credit facility is a type of working capital finance. As with overdrafts, you can access pre-approved funds as required to boost the working capital available to your business and cover cash flow gaps.
Please bear with us! We are crunching the numbers
Please bear with us!
We are crunching the numbers
Revolving Credit Facilities - Features and benefits through Funding Options:
We compare 120+ lenders
A Finance specialist is available to guide you through the process
It is free and doesn’t affect your credit score
Quick process—you’ll typically receive a decision within 24 hours
Ease cash flow issues
Revolving Credit Facilities - How do they work?
The amount a lender will look to offer is typically calculated as one month’s revenue, however in the case of strong businesses or repeat customers they may offer a top-up or an increase in the limit after just a few months.
Usually, once you've repaid a certain amount of money, you can withdraw more — hence the term 'revolving'. The simplest way to think about revolving credit facilities is that they're effectively a type of loan that can be automatically renewed.
Because of their convenience and flexibility, revolving credit facilities tend to have higher fees than fixed term loans. The term will also likely be limited to between 6 months and 2 years — however, if all goes well, a lender will typically offer a renewal at the end of the term.
Revolving credit facilities are best used to cover specific cash flow gaps for a week or two, which means you're only paying interest for a matter of days, rather than for months or years as you would with a fixed business loan. In other words, having revolving credit means you only pay for what you use.
6.03% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,216.71. The total amount payable is £53,200.96
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities
Annual Percentage Rate
Rates from 2.75% APR
6 months to 30 years terms