Agree a limit
The lender sets a maximum facility based on affordability, trading performance and its credit assessment.
Revolving credit facility guide
Revolving credit
A revolving credit facility provides an agreed limit that a business can draw, repay and reuse during the facility period. It can be more flexible than a fixed-term loan, but availability, pricing and renewal remain subject to the lender's terms.
Often considered for
- Seasonal working-capital requirements
- Managing uneven receipts and payments
- Short-term stock, supplier or payroll commitments
- Providing a liquidity buffer for a growing business
The structure
How revolving credit can work
The exact process, eligibility rules and legal structure vary by provider.
Draw when required
The business accesses funds within the available limit and normally pays charges on amounts drawn, with other fees possible.
Repay and reuse
Repayments restore availability during the facility period, subject to the agreement and any ongoing reviews.
Lender assessment
What a provider may consider
- Recent cash flow and bank-account conduct
- Turnover, profitability and existing commitments
- Seasonality and the reason for recurring usage
- Credit profile, security and guarantees
- Whether the business can reduce the balance rather than remain permanently drawn
Prepare the evidence
Information that may support the request
- Recent accounts, management information and bank statements
- A rolling short-term cash-flow forecast
- An explanation of seasonal or timing-related funding gaps
- Existing debt and facility limits
- Evidence of the receipts expected to repay drawings
Compare carefully
Points to understand before proceeding
- Compare interest or usage charges, arrangement fees, non-utilisation fees and renewal costs.
- Check whether the lender can reduce or withdraw the limit and how often it reviews the facility.
- Understand any clean-down requirement, security and personal guarantees.
- A revolving facility may not suit a permanent funding need that cannot be repaid from normal trading.
Build the funding case
Present the need, evidence and repayment plan together
Fundry helps businesses organise a structured request for potentially relevant lenders to assess.
This guide provides general information only and is not financial advice or a recommendation. Product structures, eligibility, costs and terms vary by provider and remain subject to assessment. Review any offer carefully and seek independent advice where appropriate.