Image by Alex Tai

REVOLVING CREDIT FACILITIES

Funding at Your Fingertips

A revolving credit facility (operates in a a similar way to the traditional overdraft) is a form of credit issued by a funder that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again. A revolving loan is considered a flexible financing tool due to its repayment and re-borrowing accommodations.  Typically these facilities are secured on the assets of the business such as debtors, stock, assets and property or alternatively on the personal guarantees of Directors which may or may not be supported by their properties.  There is a wide range of solutions with differing interest rates and security requirements.  Let us help you source the right product.

 
Business Meeting

REVOLVING CREDIT OPTIONS

An Alternative to the Overdraft  or Invoice Finance?

Revolving Credit Facilities are usually operated with corporate security, personal security or are backed by personal guarantees.  The greater the value of security available the greater the facility will be and the pricing will be lower.  Where unsecured personal guarantees back the facility it usually costs more and funding is limited to lower amounts.

 
Image by Mike Hindle

SECURED BY CORPORATE ASSETS

Corporate Assets Secure The Facility

Usually offered to more established businesses.  Assets considered as security include debtors, plant and machinery, property and stock.  Costs tend to be keener and the facility size larger.  With some funders there is no need for personal security or guarantees.