Revolving Credit Facility
Revolving credit is a great alternative to a traditional overdraft allowing you to withdraw money, repay it and then withdraw it again to fund your business…
Simply
Most businesses at some stage will require an overdraft facility and revolving credit can help them to grow and diversify. We work across the whole of the market to ensure that your revolving credit facility is tailored to the needs of your business.
Interest is often charged for the funds drawn, for the time they are drawn and depending on the lender there is little to no charge for funds that aren’t drawn. When you combine that with often no set-up fee involved, this type of facility is often the first choice as the ‘rainy day fund’.
How does a revolving credit facility work
Revolving credit facilities are exactly that, they revolve. As opposed to a fixed business loan which runs for a term of say 3-5 years.
A revolving facility is a rolling agreement with an initial term of either 12 or 24 months, with the ability to structure on an ongoing basis.
Some business benefits of a Revolving Credit Facility
- Quick – can be set up much quicker than a traditional overdraft or bank loan, often within a matter of days
- Personal Guarantee backed
- Flexible – revolving credit is perfect for businesses with seasonal needs such as working capital or growing the business
