Compare revolving business credit facilities

A revolving business credit facility could offer your company a way to borrow as and when you need.

4 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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Think Business Loans Business Loan
Loan amount
£25,000 to £1,000,000
Representative APR
7.26% APR
Loan term
1 month to 12 months
“Rated 5* “excellent” on Trust pilot. Our experts will compare multiple business finance products across 100s of lenders to find the option that is right for you. 75% of our customers receive an offer.
Think Business Loans is a credit broker and not a lender. Minimum turnover is £200,000 with 1 year trading.
Representative Example: The representative rate is 7.26% APR (fixed) so if you borrow £60,000 over 60 months at a rate of 5.76% p.a. (fixed) you will repay £69,197.05 in total.
Swoop Business Loan
Loan amount
£50,000 to £1,500,000
Representative APR
6.85% APR
Loan term
3 months to 72 months
Simple, secure and speedy access to over 1,000 funding providers without affecting your credit rating. Team of five-star Trustpilot-rated experts to guide you through the process.
Swoop is a broker, not a lender. Minimum 1 year of trading and Minimum turnover of £200,000.
Representative Example: The representative rate is 6.85% APR (fixed) so if you borrow £100,000 over 60 months at a rate of 6.00% p.a. (fixed) then you will repay £117,670 in total.
Funding Options Business Loans
Loan amount
£1,000 to £500,000
Representative APR
30% APR
Loan term
1 month to 120 months
Funding Options is a Credit Broker and not a Lender. Their APR starts from 2.75% and has an average of 6.03%. They can help you prepare and submit your Coronavirus Business Interruption Loan Scheme application through multiple CBILS accredited Lenders.
Minimum Turnover is £60,000 with 12 months minimum trading.
Representative Example: The representative rate is 30% APR (variable) so if you borrow £75,000 over 12 months at a rate of 30% p.a. (variable) you will repay £87,738 in total.
Funding Xchange Business Loan
Loan amount
£1,000 to £250,000
Representative APR
10.5% APR
Loan term
1 month to 12 months
Funding Xchange is a credit broker, not a lender. Funding Xchange puts you in control of your business funding giving you access to indicative funding offers within 3 minutes.
Minimum annual turnover of £100,000, trading history of 18 months and Companies House registration are required.
Representative Example: The representative rate is 10.5% APR (variable) so if you borrow £50,000 over 24 months at a rate of 10.5% p.a. (variable) you will repay £55,650 in total.

What is a revolving credit facility?

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.

How does a business line of credit work?

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.

Find out how other types of business loans work here

How long do they last?

Usually up to 12 months, but sometimes longer.

You can usually pay off what you owe earlier to save money on interest.

How do credit limits work?

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

Revolving business credit pros and cons

Pros
  • Flexible borrowing
  • Only pay interest on drawdown
  • Quicker than other finance
  • Bad credit applicants considered
Cons
  • Interest rates can be higher
  • Some require an asset as security
  • Usually only last 1-2 years at a time
  • May need to submit documents to withdraw

How to get a business line of credit

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.

What are secured and unsecured loans?

Revolving credit FAQs

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.

About our revolving credit comparison

We include revolving credit facilities available directly from lenders and through brokers on our panel. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.