Revolving Credit Facility for businesses

A revolving credit facility (RCF) is a flexible working capital solution, similar to a standard bank overdraft,by which you can draw down cash, repay when you are able and draw down again.The flexibility of the facility means that it is a fantastic option for fuelling growth strategies, delivering acquisitions or just strengthening working capital. 

Download our product guide for a comprehensive and easy to read guide on this revolving facility for businesses.

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Facility type

Revolving Credit Facility – a flexible solution to cashflow for your business

Advance %

Up to 120% against receivables, 30% against stock and 70% against P&M


8-12% per annum charged only against usage of the facility


Proven business model, Min turnover of £500,000, May be loss-making (if profitability is forecast against reasonable growth assumptions), B2B – excluding construction sector

Assets leveraged

Receivables, Stock and P&M

Key benefits

Draw down, repay and re draw when you like; simple fair fee structure; maximise cashflow, no debtor contact


Flexible drawdowns

Use the facility and draw down cash when you need it and repay when you are able.

Generate more cash

The facility can generate cashflow against multiple asset classes including up to 120% of accounts receivables, up to 30% against Stock and up to 70%
against P&M.

Support growth

The facility has a max borrowing limit of £20m and is available in multiple currencies and across multiple jurisdictions. This is all available in the one single

Simple fee structures

Only pay for what you use and for how long you use it for. Rates are between 8% to 12% a year and only on drawn funds.

Simple management

No need for interaction with your customers. There is no need to verify invoices with customers due to how the facility is administered.

Significant cashflow support

Access up to 150% more funding than with traditional invoice finance facilities.


The Revolving Credit Facility is more akin to an Asset Based Lending Facility as it is able to leverage your entire balance sheet whereas an invoice finance facility leverages the accounts receivables only. This means that the Revolving Credit Facility will generate more cash than traditional working capital facilities.


The table below shows the difference between a revolving credit facility and invoice financing and how much more the Revolving Credit Facility can generate for your business. 


What is a revolving credit facility?

A revolving credit facility is essentially a line of credit that is agreed between a business and a lender. The major characteristic of the revolving credit facility is it’s flexibility. Your business is able to access any amount of cash, up to the agreed credit limit, on a continually revolving basis, which means you can draw down cash, repay and withdraw again, as needed.

What can a revolving credit facility lend against?

The revolving credit facility will have an overall credit limit set, up to which you are able to draw down, repay and draw again. To set this limit the lender will assess the value of the balance and so the revolving credit facility has the ability to release cash tied up in invoices, stock and P&M and at higher levels than the more traditional invoice finance facility.

How does a revolving credit facility work?

The Revolving Credit Facility for businesses is akin to a standard bank overdraft facility and is great for businesses with assets on their balance sheet to borrow against. An overall funding limit is set, like an overdraft, and business can borrow up to the credit limit assigned and continue to repay and re-borrow without penalty or additional cost thus unlocking really cost-effective cashflow for their business.

What can a revolving credit facility be used for?

How and when and for what the revolving credit facility is used depends very much on the individual. The flexibility and ‘stand by’ nature of the facility means that is flexible and is designed to support a firm’s cashflow needs, whether that is bridging a gap while cash is tied up in a balance sheet and supporting regular monthly cashflow needs; or laying dormant for months and only being used once and a while if you need extra cash to invest in stock or additional employees.

Some companies may use a revolving credit facility regularly, whereas others may use it only a handful of times during the agreed term: the frequency depends on each firm’s business model and its cash flow needs.

What is the difference between a revolving credit facility and invoice finance?

Whereas a term loan is borrowed and repaid according to a set schedule over the agreed term of the loan (usually two to five years), the revolving credit facility can be used to draw down, repay and withdraw capital on a more flexible basis. Used properly the revolving credit facility should continue to generate cashflow for the business. With the term loan, although it provides an instant injection of capital, it will not make more cash available if you need more and it will then decrease cash available for working capital when you start making the repayments.

What is the difference between a revolving credit facility and a term loan?

There are two key differences between the revolving credit facility and an invoice finance facility

1. The advance rate, or how much cash a facility can leverage, of a revolving credit facility is very often much higher than what would be available from a traditional invoice finance facility, which in general is capped at 90% of accounts receivables. The revolving credit facility is also able to generate cash from more of the balance sheet that just the accounts receivable.

2. The cost of the revolving credit facility is simpler to understand. Interest is just charged against the outstanding balance (ie the facility funds in use), as opposed to paying a fixed monthly fee whether you are borrowing any money or not.

What are the eligibility criteria for a revolving credit facility?

The business must provide goods or services on a B2B basis but not operate within the construction sector. The business model needs to be proven and the business have a minimum turnover of £500,000. Financially your business may be loss-making but only if profitability is forecast against reasonable growth assumptions.
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