How does a revolving credit facility work?
Set a credit limit
Draw down money
Pay interest
Repay and replenish
Review and renew
What can you use a revolving credit facility for?
Bridging cash flow gaps
Cover any delays between paying suppliers (accounts payable) and receiving payments from customers (accounts receivable).
Inventory and stock
Quickly purchase large volumes of stock and raw materials to meet demand or take advantage of supplier discounts.
Operational costs
Ensure timely payment of critical running expenses, such as payroll, rent, and utility bills.
Managing seasonality
Fund increased inventory and staffing needs during peak sales periods, repaying when seasonal revenue arrives.
Unexpected expenses
Act as an immediate financial buffer for emergency equipment repairs or unforeseen tax obligations.
New opportunities
Provide fast, on-demand capital to invest in sudden growth chances without a new loan application.
Are you eligible for a revolving credit facility?
Be over 18 Be a UK resident Have a UK-based business Have a UK bank account
What do you need to apply for a revolving credit facility?
Basic information about your business, such as how old it is, and your annual revenue Information on directors and shareholders Bank statements covering the past year
We've already helped businesses secure more than £1.6 billion
How to apply for a revolving credit facility
Tell us how much you need to borrow We’ll ask you how much you need, what it’s for, and for some basic information about your business. Compare loans without impacting your credit score We’ll connect you to the largest network of lenders in the UK, so you can view affordable credit options that suit the unique needs of your business. Apply in minutes Once approved, you’ll receive a quote from a lender you matched with. Get a decision and receive your money Depending on the type of finance you’ve applied for, credit could be available in around 24 hours.
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What is a revolving credit facility?
Revolving credit facilities vs traditional term loans
| Revolving credit facilities | Term loans |
|---|---|---|
Funding structure | Credit line - borrower can draw, repay and redraw money up to a set limit | Lump sum - borrower receives the entire amount upfront |
Flexibility and access | Flexible and reusable - money is available on demand, and the facility replenishes upon repayment | Fixed and certain - you receive the full defined capital amount upfront for immediate use |
Interest | You only pay interest on the portion of the loan you use | You pay interest on the full loan amount |
Repayment | Variable - often requires minimum payments, allowing you to manage cash flow fluctuations | Predictable - the loan and interest are repaid through a set schedule of fixed instalments |
Early repayments | Typically no penalty, as repaying frees up the credit line for future use | There may be a prepayment penalty if the loan is paid off early |
Associated fees | There may be an annual fee or a non-utilisation fee on any unused credit | After the initial arrangement and closing fees, there are typically no fees on the unused credit |
Ideal for | Working capital, covering short-term cash flow gaps and managing seasonal or unexpected expenses | Major capital expenditures, acquisitions or large projects |
What are the benefits of revolving credit?
Cost efficiency
Continuous, reusable capital
Cash flow control
Fast, convenient access
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