Revolving Credit Facility

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.

Revolving Credit Facility
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  • This quote won't affect your credit score
  • Dedicated Business Finance Specialist
  • Get access to 120+ lenders

Revolving Credit Facilities - Features and benefits through Funding Options: 

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  • 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.

Financial product information

Representative example*

7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56

*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

Repayment period

1 month to 30 years terms

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