A revolving credit facility is a form of business borrowing where a company can draw money up to an agreed limit, repay it, and then draw again as needed. The available credit replenishes as you repay, a bit like a flexible reusable limit.
How it differs from a term loan
With a term loan, you borrow a fixed amount once and repay it over a set period. A revolving facility is more flexible, because the limit can be used repeatedly, and interest is usually charged on the amount drawn rather than the whole limit.
- Funds can be drawn and repaid multiple times within the limit.
- Interest typically applies only to the balance actually in use.
- It suits ongoing or unpredictable working-capital needs.
How Credit Corp products compare
Credit Corp offers Credicorp Flex and Credicorp Slice. The flexible features of each are set out in your offer, so check the product terms to understand how drawing and repayment work for your facility rather than assuming a generic revolving structure.
Credit Corp lends only to UK limited companies and LLPs for business purposes and is an exempt business lender, so the Financial Ombudsman Service and FSCS do not apply. Our team can explain how a particular product works for your company.
See also: What is a credit limit?, How the running-credit facility differs from a one-time loan, What is an overdraft facility?.