Revolving Credit Finance

Revolving credit facilities are a great alternative to a traditional overdraft provided by the high street banks. A lender / funder agrees a line of credit with your business which can be drawn down and repaid during the agreed term.

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 revolvolving 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 dependant on the lender there is little to no charge for funds which aren’t drawn. When you combine that with often no set-up fee involved, this type of facility is often 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 often a rolling agreement with the initial term either 12 or 24 months, with some facilities being structured on an ongoing rolling basis.

Benefits

  • Quick – can be set up much quicker than a traditional overdraft or bank loan, often within a matter of days.
  • Personal Guarantee backed
  • Flexibility – revolving credit is perfect for businesses with seasonal need such as working capital or growing the business. Although often a more expensive option than a business loan, revolving credit provides working capital for business which otherwise would be unlikely to secure more traditional finance.
Contact Us today to discuss how we can raise the finance your business needs to grow.