Skip to content
GrowthBusiness Finance
Finance
Industries
Check what you could raiseMake an enquiry
Client loginPartner login
Revolving credit facilities

Revolving credit facility broker

Growth Business Finance arranges revolving credit facilities from £200k to £100m for UK businesses, across 650+ lenders. A committed line you draw, repay and redraw as cash flow moves, with interest only on what you use, priced from 2.5% over Bank Rate.

Check what you could raise Make an enquiry

No credit search and no upfront fee.

Reviewed by Tom Renshaw, Managing Director. Updated .

facility size
£200k to £100mfacility size
over Bank Rate on drawn funds
From 2.5%over Bank Rate on drawn funds
typical committed term
3 to 5 yearstypical committed term
on what you draw
Interest onlyon what you draw

What is a revolving credit facility?

A revolving credit facility (RCF) is a committed line of credit with an agreed limit. You draw what you need, repay when cash comes in, and draw again, as often as you like during the term. Interest is charged only on the drawn balance; the undrawn part usually carries a smaller commitment fee.

Because the limit is committed for the term, typically 3 to 5 years, an RCF is more dependable than an overdraft, which a bank can usually withdraw on demand. That makes it the standard working capital facility for established businesses, often alongside a term loan.

RCF, overdraft or term loan?

A term loan suits a one-off need such as an acquisition or a capital project, repaid over a set period. An RCF suits needs that come and go: seasonal stock, large contracts, VAT quarters or a lumpy debtor book. Many businesses have both: a term loan for the long-term need and an RCF for working capital.

Talk it through

Tell us what you need and we will search 650+ lenders for indicative terms, with no upfront fee.

Check what you could raiseMake an enquiry
Revolving credit facilities

How it works

  1. 1

    The lender sets a limit

    Based on earnings, cash flow and, where relevant, the assets behind the facility.

  2. 2

    You draw when you need cash

    Usually on a day or two's notice, in amounts that suit you.

  3. 3

    You repay as cash comes in

    From customer receipts or seasonal peaks, with no penalty for repaying early.

  4. 4

    You draw again

    Repaid amounts are available to use again throughout the term.

  5. 5

    The facility is reviewed or renewed

    Ahead of the end of the term, often with a higher limit as the business grows.

Who it suits

  • Established, profitable businesses with working capital needs that rise and fall
  • Wholesale and distribution and retail businesses with seasonal stock builds
  • Construction and contracting businesses funding work before payment
  • Professional services firms funding lock-up and partner tax
  • Groups after an acquisition that need working capital alongside the acquisition debt

What lenders look at

Earnings and cash flow
EBITDA, cash conversion and how comfortably the business services its debt.
How you use the facility
The working capital cycle the line is funding and when it is repaid.
Trading record
Usually at least two years of filed accounts and current management accounts.
Forecasts
A cash flow forecast showing peak usage and headroom.
Existing debt
Other facilities, security already given and how they fit together.
Management
The team's experience and the quality of financial reporting.
At a glance

Typical terms

Typical terms
Facility size£200k to £100m
PricingFrom 2.5% over Bank Rate on drawn funds
TermTypically 3 to 5 years, committed
InterestOnly on what you draw, with a commitment fee on the undrawn part
SecurityUnsecured, or secured on the business's assets for larger limits
StructureOn its own, alongside a term loan, or within an asset based lending facility

All figures are "up to" and "from", and subject to status and lender approval.

Our process

How GBF runs the process

We start with your cash flow pattern, accounts and forecasts, then work out how big the line should be, whether it should sit on its own, beside a term loan or inside an asset based lending facility, and which lenders price that structure best. We prepare the credit paper, run a competitive process across 650+ lenders, compare terms side by side, including fees and covenants, and manage the facility through to the first drawdown.

  • One senior adviser from first call to completion
  • A credit paper lenders take seriously
  • Indicative terms compared side by side
  • £0 upfront fee
Related facilities

Related facilities we arrange

Business loansTerm loans, RCFs and Growth Guarantee Scheme lendingWorking capital financeEvery way to fund the gap between paying out and getting paidAsset based lendingA revolving facility sized on receivables, stock, plant and propertyInvoice financeRelease up to 90% of unpaid invoicesRevolving credit facility guideA fuller explainer for growing SMEs
FAQs

Revolving credit facilities: common questions

How does a revolving credit facility work?

The lender agrees a limit for a set term. You draw, repay and redraw within it as often as you need, and pay interest only on the amount drawn.

What does an RCF cost?

Pricing starts from 2.5% over Bank Rate on drawn funds, plus a commitment fee on the undrawn part and an arrangement fee. The exact terms depend on the business, the security and the size of the facility.

How big a revolving credit facility can my business get?

Growth Business Finance arranges RCFs from £200k to £100m. Lenders size the limit on earnings and cash flow, and larger limits can be secured on the business's assets.

Is a revolving credit facility better than an overdraft?

For most established businesses, yes. An RCF is committed for its term, typically 3 to 5 years, while an overdraft can usually be withdrawn on demand.

Can an RCF sit alongside a term loan?

Yes. A term loan for a one-off need and an RCF for working capital is one of the most common structures, often with the same lender and one set of covenants.

Is GBF a lender?

No. Growth Business Finance is a commercial finance broker and debt adviser. Finance is subject to status and lender approval.

Talk to us about revolving credit facilities

Check what you could raise in two minutes or make an enquiry. No upfront fee and no credit search to get started.

Get startedMake an enquiry