Revolving Credit Line

What is a Revolving Credit Facility?

A Revolving Credit Facility (RCF) is a flexible financing option for businesses looking to access capital as and when they need it. It works similarly to an overdraft but is not linked to your bank. With a Revolving Credit Line, you're approved for a credit limit that you can borrow from at any time, up to that limit. You only pay interest on the amount you borrow, and as you repay the borrowed amount, your available credit is replenished. Borrowing limits can go up to £30,000 with just a personal guarantee (PG) or higher if security is provided.

How does it work?

• Repayments are flexible and depend on how much you use. 
• Typically, repayments are made on a monthly basis, and you'll only pay interest on the amount you've borrowed. 
• As you repay the borrowed funds, your available credit is restored, so you can keep borrowing as needed. 

This makes it a great option for businesses that experience fluctuating cash flow or have seasonal working capital needs.

When is it suitable?

A Revolving Credit Facility is ideal for businesses that need ongoing access to funds but don't want the burden of a traditional term loan. It's perfect for:

• Managing cash flow: If you experience seasonal fluctuations or need to bridge the gap between paying expenses and receiving payments, a Revolving Credit Line gives you instant access to funds without the need for a long-term loan.
• Inventory and supplies: Businesses with changing inventory needs can use the credit to purchase stock, ensuring they don't miss out on opportunities.
• Emergency funding: Whether dealing with unexpected costs or taking advantage of time-sensitive opportunities, a Revolving Credit Facility offers a quick, flexible financial cushion.
• Flexibility: Borrow what you need, when you need it, and pay it back on terms that fit your cash flow, without the hassle of a traditional bank overdraft.

What is required for an application?

To apply for a Revolving Credit Line, we'll typically need:

• Business Financials: To assess your business's eligibility, you'll need to provide financial documentation such as your latest accounts, bank statements, and management accounts.
• Business Information: A brief overview of your business operations, revenue, and growth plans will help us match you with the right lender.

Security details (optional for larger amounts): For credit lines over £30,000, you may be asked to provide collateral such as property. This may require a full valuation.