Secured Revolving Credit Facility for businesses

A flexible line of credit, secured against your property, that provides a simple and low cost alternative for accessing funds

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

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What is Revolving Credit Facility?

The Secured Revolving Credit Facility for businesses is akin to a standard bank overdraft facility and is great for businesses with limited assets on their balance sheet to borrow against, retail and hospitality businesses as well as those businesses with large upfront costs or seasonal trends. Businesses 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.

How the loan amount is set?

An overall credit limit is assigned to the business. This is secured by 1st, 2nd, or 3rd charge against 1 or more Residential or BTL properties. The amount of facility that can be generated is the difference between the outstanding borrowing secured against the property (such as a mortgage) and the value of the property up to a maximum of 75% Loan To Value.

For example a property value at £500,000 with a £250,000 mortgage will be able to generate a facility of £125,000. This is calculated as £500,000 x 75% (£375,000) – £250,000 = £125,000


How it works

The term of the facility is 10 years. For the first 60 months (5 years) is a flexi-term with the business able to draw and repay funds as and when needed. Payments are interest only and repaying in full is without penalty. After 60 months, outstanding balance reverts onto a capital and interest repayment schedule for the remainder of the term.

The money drawn down can be used for any business purpose.


Rates start from 4.95% per year with the ultimate rate dependent on the credit strength of the business and business owners.

Monthly repayment calculated based on balance drawn down. The Borrower will only ever pay interest on the amount outstanding. If nothing is drawn, nothing is paid.

Case Study

Our client was an app developer and designer. They had secured a number of new contracts and required a cashflow facility to be able to take on more staff and invest in upfront costs for each project.

Unfortunately, the business had been impacted firstly by Brexit and latterly by Covid-19 which caused a significant fall in its credit rating and credit score.

This impact resulted in the business being deemed very high risk and so the business owner had no luck in securing finance for the business and was in jeopardy of losing the contracts they had won and so threatened the viability of the business.

The business owner was introduced to Oakmead Finance.

We took into account the historic issues that had affected the business but repositioned this by highlighting the positive measures taken by the director and built a case around the future potential of the new contracts they had one.

We also recommended and secured a £70,000, 10 years committed Flexible Revolving Credit Facility for the business which was secured by the third charge on an investment property owned by the director and pricing based on the credit strength of the business owners. This facility allows

This facility allows the business owner to draw down up to £70,000 and repay as many times as they like without penalty. Initially, they drew down £30,000 to pay development and staff costs which were repaid in part 2 weeks later when an interim invoice was paid by their client. They then subsequently drew down an additional £20k to complete stage two of their contract. There was no valuation or valuation fee or legal costs – as is typical with standard property loan facilities.

The facility is interest only and the interest payment is calculated based on balance drawn down and the duration it is drawn for. If no money is drawn there is no interest chargeable.

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