Revolving Credit Facility
What is a Revolving Credit Facility?
A revolving credit facility is a line of credit that allows businesses to draw down funds as and when they require, within a pre-agreed limit.
Why Choose a Revolving Credit Facility?
Revolving credit facilities are extremely flexible. You only draw down funds as required, and only pay for what you are using.
How it works:
A revolving credit facility works much the same way as a standard overdraft or credit card. You are charged interest daily based on what you are using within your agreed credit limit.
Revolving Credit at a Glance
Eligibility:
Any business that has been trading for 6+ months.
Benefits:
Similar to an overdraft. Only pay interest on drawn funds regardless of your agreed credit limit.
Loan Amounts:
Facilities available from £10,000 - £2m
Turnaround times:
Approval in as little as 48 hours.
Term:
Flexible revolving terms up to 2 years
Repayment terms:
Interest paid only on drawn funds. Interest only and retained options available.
Interest Rates:
From 0.75% per month
A Revolving Credit Facility (RCF) allows businesses to access funds as and when they need them, without the constraints of fixed repayment schedules. This ensures that working capital is readily available for day-to-day operations, unexpected expenses, or growth opportunities, providing the flexibility to manage cashflow more effectively. At Elite Business Funding, we offer revolving credit facilities tailored to meet the unique needs of your business, ensuring you have the funds available when you need them most.
What is a Revolving Credit Facility?
A revolving credit facility is essentially a revolving line of credit that businesses can access when needed. Unlike a traditional loan, you are not required to take the full amount in one lump sum. Instead, you can draw funds when required, repay them, and then draw them again. This makes it ideal for managing gaps in your cashflow, handling unexpected expenses, or taking advantage of business opportunities without the need to apply for new loans each time.
Our revolving credit facility works in a similar way to an overdraft or credit card. Once approved, you have access to a predetermined credit limit, and you can borrow funds up to that limit. With business revolving credit, you are only charged interest on the funds you draw, and when you pay it back, those funds become available again for future use.
Why Choose a Revolving Credit Facility?
A revolving credit facility offers several key benefits for businesses:
- Flexibility. Access funds as required without fixed repayment schedules. A revolving line of credit is perfect for handling cash flow gaps, unexpected expenses, or growth opportunities.
- Interest Only on Drawn Funds. You’re only charged interest on the funds you use, rather than the entire credit limit.
- No Reapplication Required. Once approved, you’ll have continuous access to funds, without the need to apply for new loans.
- Quick Access to Funds. You could be approved for business revolving credit in as little as 48 hours, giving you access to funds when you need them most.
- Cost-Effective. As you only pay interest on the funds you use, a revolving credit facility helps reduce overall borrowing costs, making it a more economical option for managing cash flow.
- Customisable. Our revolving credit facility can be tailored to your business’s unique needs, with loan amounts ranging from £10,000 to £2 million.
What Type of Businesses are Suitable for a Revolving Credit Facility?
Revolving credit is especially helpful for seasonal businesses or those with volatile or unpredictable cashflow facing unexpected costs or emergencies. Funding may be used flexibly, whether for stock, work in progress, or bridging the gap between money that is due to be paid to you. Whatever the business type or need, get immediate access to funds as and when required up to your available limit.
Larger facility options are also available for property investors looking to purchase at auction.
How it Works
A revolving credit facility works much the same way as a standard overdraft or credit card. You are charged interest daily based on what you are using within your agreed credit limit. You can borrow, repay, and draw down as often as required.
The agreed credit limit is usually determined by several factors including your business turnover and your credit history, along with the assets within your business. If your cashflow and business circumstances change it is possible you may be eligible to increase your limit.
Most lenders offer terms on a revolving 12-24-month basis that can be automatically renewed. Both unsecured, and for large amounts, secured options, are available.
Is a Revolving Credit Facility Right for You?
A revolving credit facility can be an excellent option for businesses of all sizes, particularly those with fluctuating cashflow needs. If you find yourself regularly facing gaps in cashflow, facing unexpected expenses, or simply want to have funds available to seize growth opportunities when they arise, a revolving line of credit could be the ideal solution. Revolving credit provides the flexibility to borrow and repay as needed, without the constraints of fixed repayment schedules or the need to reapply for credit.
At Elite Business Funding, we offer a leading revolving credit facility in the UK, tailoring this service to meet your business’s specific needs. Get in touch today to learn more about how our revolving credit facility can help you manage cashflow and support your growth.
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