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Revolving Credit Facility
Draw, repay and redraw as you need.
A revolving credit facility (RCF) works like a flexible pot of money you can draw from, repay, and draw again — similar to a business overdraft. You only pay interest on the amount drawn, making it ideal for managing fluctuating cash flow.
Best Suited For
- Seasonal businesses with variable income
- Managing cash flow gaps between projects
- Funding projects with uncertain timelines
- Businesses needing ongoing flexible access to funds
May Not Be Suitable If
- One-off large capital investments
- Businesses seeking the lowest possible cost of borrowing
- Companies with no established trading history
Typical Terms
- Facility limit: agreed upfront (typically £25k–£500k)
- Terms: 12 months–3 years (renewable)
- Interest charged on drawn balance only
- Can be secured or unsecured
Key Eligibility Requirements
- Minimum 2 years trading typically required
- Good credit history preferred
- Regular and demonstrable trading income
- Business bank statements (3–6 months)
- Personal guarantee usually required
- Clean or manageable existing borrowing
What Lenders Will Ask You
1.What is your annual turnover?
2.How regularly do you need to draw funds?
3.Do you have existing banking facilities?
4.Is your cash flow seasonal or project-based?