Revolving Credit Facility
These types of facilities are a good way to fund working capital requirements, as they allow for an immediate cash advance. Unlike a fixed term loan they are based on a rolling agreement.
They work very similarly to a bank overdraft and are a good alternative. The lender will normally agree how long you must repay the facility from your first drawn down. It isn't uncommon for lenders to charge weekly interest on the amount borrowed. This will reduce as and when payments are made.
A Working Example
Let's say you have recently won a large contract but your customer won't pay you for an extended period of time, but you need funds to maintain working capital and ultimately finance the contract.
With a revolving credit facility, you could secure a funding line that gives you 12 months to repay. You can draw the funds you need to finance the contract and then repay the facility once your customer pays you.
What the benefits?
A RCF is designed to maintain working capital and to allow your business to smooth over any foreseen cash-flow issues. In addition to this they also bring:
If you would like further information on the above product or would like to apply, please use the options on the top of this page.
Why choose us?
We are fully authorised and regulated by the FCA
We charge no up front fees
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