A credit facility limit is not set in stone. It is calibrated to your business at a point in time, and as your trading volume, revenue, and track record evolve, the limit that was right at origination may no longer reflect what you actually need — or what you can comfortably service.
Signs your limit may be too low
- You are regularly hitting the ceiling of your facility and having to delay purchases or payments as a result.
- You have turned down a contract or delayed a decision because the facility headroom was not sufficient to support it.
- Your average monthly revenue has grown materially — by 50% or more — since the facility was agreed.
- You find yourself juggling multiple short-term arrangements because one facility is not large enough, creating unnecessary administrative complexity.
Signs your limit may be too high
A limit that is much larger than you ever use is not inherently a problem, but it can be a prompt to ask whether you are paying for access you do not need, or whether the facility is sitting unused because the original business case for it has changed. There is no virtue in a large limit for its own sake.
How to approach a limit review
Gather twelve months of bank statements and management accounts that show the gap between your peak and trough balances — this gives us a clear picture of the actual cashflow cycle you are managing. A specific narrative also helps: if you want to increase a limit to support a new contract or a new supplier relationship, saying so directly is more persuasive than a general request. We will assess what your business can comfortably service, not just what you have asked for.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Keeping business borrowing proportionate to revenue, How to make the most of a revolving credit facility.