Revolving Credit Facilities

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With revolving credit facilities, lenders will give you a facility when you require it, with interest paid on what you borrow. It’s a great way of staying in control of your business finances.

Revolving Credit Facilities

This is one type of finance that is commonly referred to as a flexible overdraft. The lender will provide the business with available funds or a line of credit, that can be drawn down as required. The company doesn’t have to draw down all the funds straight away, giving them the control and flexibility of how much they would like to borrow. It provides the ultimate flexibility in terms of business finance.

Some lenders will look to give you a facility that you can use when required, with interest paid on the funds borrowed. The number of available funds to you can be less than other forms of finance but is a great way to only pay for the funds you need. This is why it is called a revolving facility as funds can be drawn and repaid throughout the term.

Business Overdraft
Just like an overdraft, we have funders who can offer you a credit line so you can access cash when you need it. The great thing is you only pay when you use it, giving your business the flexibility and financial backing it requires.

Cashflow Finance
Revolving credit facilities are excellent for businesses that need cash for working capital. We specialize in supporting you to get the finance you require.

Short-Term Southwest Finance
Credit lines. Short terms loans and revolving facilities are great for short-term cashflow requirements. we have experienced many scenarios, so, we can speak to you about what we have experienced and how they will benefit your business.

A flexible overdraft

A flexible overdraft, it’s a cost-efficient way of having business finance when you need it. However, you don’t incur charges when it isn’t used. On the other hand, the facility is often chargeable at a day rate meaning it’s transparent and easy to work out. The day rate is based on the number of funds in use, so it can be costly if you use constantly use the facility. In brief, that is why it addresses short-term cashflow issues with this type of business finance not designed for long-term issues.

The revolving credit facility is unsecured meaning it is usually linked with only an unsecured personal guarantee to yourself. Consequently, if anything happens to the business, you will find yourself liable for the remaining amount.

Most funders look at three months of bank statements and full financial accounts to determine the amount available to the business. Once the information is reviewed in 2-4 days, most facilities are set up

Many businesses like the non-committal approach; however, the rate can work out very expensive if used for a substantial length of time. Considering what the business finance is for and how it will be used is vital. We always endeavor to understand the requirement for funding and whether a revolving facility is one of them.

It’s a great way of having that flexible overdraft when you need it, and not incur charges when you don’t.

Revolving Facilities

The finance is unsecured means it is often linked with a personal guarantee to yourself. This means, If anything happens to the business, you may find yourself liable for the remaining amount.

Many businesses like the non-committal approach; however, if used all the time the rate can work out very expensive. Also, considering what the business finance is for and how it will be used is critical, as a flexible overdraft may not be worth it to you.

Helpful Business Finance Resources

We offer free consultations to all of our new clients and are happy to help with whatever we can.