A revolving business credit facility could offer your company a way to borrow as and when you need.
Looking through a range of options gives you more chance of securing a great deal. You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.
Prepare a business plan
Decide why you are comparing deals for revolving business credit facilities and why you want to borrow the money. They can be a more flexible option when you need to borrow money for the business working similar to a business overdraft though without being tied to a bank account. Once you have decided that it's the right option try to find the cheapest revolving business credit facility
Compare your options
Visit as many lenders as possible to find the most competitive options. Terms and repayments can vary between providers with some requiring the facility to be secured against assets so check any conditions attached to the loan then pick a deal that offers the cheapest revolving business credit facility for your business.
Apply for the loan
Revolving credit facilities can offer flexibility. While there are commercial finance options offered by banks etc. some lenders and brokers only ever operate digitally, so to make sure you find the best revolving credit facility deals comparing quotes on the internet is a must. Once you've decided on the provider you want, simply apply.
More from business loans
A line of credit (or revolving business credit) facility is a flexible way for your business to borrow money.
Your business can draw on your revolving credit account when you need extra funds and choose how long you need to pay back what you borrow.
They work in a similar way to a business overdraft, but are not directly linked to a business bank account.
You are given a credit limit, can choose to drawdown what you want to borrow when your business needs it, and only pay interest on what you withdraw.
You could use a commercial line of credit to pay for:
Other bills and expenses
If you need to borrow a fixed amount you could consider a standard business loan instead, rather than a revolving credit agreement.
Usually up to 12 months, but sometimes longer.
You can usually pay off what you owe earlier to save money on interest.
The credit limit is the maximum amount you can borrow using the credit facility, but the limit your business will get depends on factors like your:
To set up a flexible line of credit for your business you need to know:
How long you need the credit facility for
What credit limit you need
Some lenders offer unsecured business line of credit facilities, but others require you to use business assets as a guarantee, so check this before you apply.
Some lenders can open a commercial line of credit in less than 2 hours if your application is approved.
Most lenders will allow you to track how much you have borrowed online, so you can check a live balance at any time.
Interest is normally charged daily on the funds you have drawn down from your credit facility. This interest charge is then applied weekly or monthly.
This is based on your business turnover, assets and finances. Credit facilities can offer limits from £1,000 up to over £500,000.
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Last updated: 4 March, 2022