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.
1
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
2
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.
3
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.
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:
Wages
Rent
Tax
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:
Annual turnover
Business assets
Credit record
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.
If you want to take your business to the next level but don’t have the funds to do so, you could consider getting a business loan.
Find out how to get a business loanWith the right type of borrowing you could pursue business opportunities that would otherwise pass you by, here's how.
Read more on borrowing for your businessIf you need funds to help your business grow or expand, a business loan could offer the solution you need. Here is how they work and how to get the right loan for your business.
More on how business loans workComparing business loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
Our full guide to sacking the boss and starting out on your own - from finding a unique business idea, to getting the money to fund it all the way through to secrets and tips from people who've made it themselves.
We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.
Last updated: 4 March, 2022
