If your business has unpredictable or seasonal fluctuations in cash flow or can receive unexpected bills that are hard to pay, then having access to a loan that allows you to draw down funding when you need it up to your loan limit could be very valuable.
A revolving credit facility allows businesses to withdraw and repay funding many times over during the term of the agreement without the hassle of having to apply for a loan each time. Below we have explored what some of the leading revolving credit facility lenders can offer.
The table below gives a quick comparison of the top UK providers for revolving credit facility.
|Company||Minimum amount||Maximum amount|
|Barclays||Not stated||Not stated|
|Bank of Scotland||£25,000||Not stated|
|Yorkshire Bank||Not stated||Not stated|
|Paragon Bank||£5 million||£25 million|
|Ultimate Finance||£25,000||£1 million|
* The facts and figures included here come from each company’s website and were accurate at the time of writing (September 2019) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another.
Some of the features and benefits of iwoca’s revolving credit facility.
- Loan product with a revolving credit facility
- Loans from £1,000 to £200,000
- Flexible product
- Top up the loan at any point during the loan period
- Pay interest only when you have the funds
- Allows you to repay when you can
- Typically lends up to 1 month’s revenue
- Offer fast and fair decisions
- Suitable for cash flow, stock and investment
- Rated highly on Trustpilot
iwoca is a financial provider operating across Europe that offers business loans that are designed to help small businesses. Their loans are suitable for cash flow, stock and investment which will help businesses to grow and develop.
iwoca’s business loans typically offer the equivalent of a month’s revenue between £1,000 to £200,000 over terms up to 12 months. The loan offers a revolving credit facility as they allow you to top up the loan at any point during the loan term. It’s a flexible product which charges interest only when you have the funds and allows you to repay the loan when you can.
Some of the features and benefits of Barclays’s revolving credit facility.
- Specific Revolving Credit Facility
- Fully flexible solution
- Loan amounts and terms are tailored to the client
- Drawdown funding as you need it
- Repay your loan on your terms
- No early repayment fees
- No need to reapply for finance
- Can be used alongside a Term Loan
- Available in a range of currencies
- Suitable for a variety of needs such as seasonal fluctuations and VAT bills
Barclays is a banking institution that offers a wide variety of financial products which includes loans, overdrafts, mortgages, property finance, asset and invoice finance. They offer a range of loan products which includes their Revolving Credit Facility.
Barclays’ Revolving Credit Facility is a very flexible loan product as it allows businesses to set up a loan on a fixed term length for a specified amount but enables you to draw down the funding when you need it. You can also repay the loan on your terms and can borrow the funding many times over within the loan term with no early repayment charges.
3. Bank of Scotland
Some of the features and benefits of the Bank of Scotland’s revolving credit facility.
- Funding packages which offer a revolving credit facility
- Loans from £25,000
- Terms from one month to 20 years
- Drawdown funds when you need it
- Repay the loan at any point
- Charges are linked to the funding used
- An ideal method of managing liquidity and cash flow
- Designed for short to medium loan term needs
- Dedicated relationship directors
- Suitable for a variety of needs including growth, acquisition or consolidation of debts
Bank of Scotland is a banking provider that is part of the Lloyds Banking Group. They offer a range of business finance products including loans, credit cards, overdrafts, mortgages and asset finance. Their loan range includes funding packages that can include a revolving credit facility.
Bank of Scotland’s revolving credit facility offers loans from £25,000 from one month to 20 years allowing you to withdraw funding when you need it up to your loan limit. It can act as a series of short-term loans that you pay back when you can without the hassle of applying each time and you pay interest only on the funds you borrow.
4. Yorkshire Bank
Some of the features and benefits of Yorkshire Bank’s revolving credit facility.
- Corporate and structured finance solutions
- Offers super senior revolving credit facilities
- Flexible finance solutions
- Drawdown funds when need it up to your loan limit
- Repay on your own terms
- Can be interrogated with other loan solutions
- Available to a variety of business sectors
- Can be used for a variety of reasons including acquisitions and refinancing
- Have a specialist and dedicated support team
Yorkshire Bank is a UK banking providing who offers a variety of business finance solutions which includes loans, credit cards, overdrafts, commercial mortgages, asset finance and invoice finance. Their loan solutions include corporate and structured finance which can include a revolving credit facility.
Yorkshire Bank’s revolving credit facility is a flexible finance solution which enables borrowers to draw down the funds as and when they need them within their loan limit and repay them when they can. They offer this facility to a variety of business sectors and it is ideally suited to acquisitions and refinancing.
5. Paragon Bank
Some of the features and benefits of Paragon Bank’s revolving credit facility.
- Structured Lending product
- Offers a revolving credit facility and line of credit
- Loans from £5 million to £25 million
- Terms up to 3 years
- Secured loan
- Has a dedicated team
- Offers a relationship-driven approach
- Suitable for property, retail, asset finance and consumer finance
- Created for those businesses that lend money
- Only for UK based non-banking businesses
Paragon Bank is a financial provider that specialises in lending and savings products for UK based businesses that are non-banking businesses who offer lending facilities such as property, retail point of sale, consumer finance and asset finance.
Paragon Bank’s Structured Lending product offers a revolving credit facility that can provide funds from £5 million to £25 million over periods up to 3 years on a secured basis. Their dedicated Structured Lending team offer a relationship-driven approach to lending and they will support you through the loan process and term. They also offer a variety of other lending solutions in their product portfolio.
6. Ultimate Finance
Some of the features and benefits of Ultimate Finance’s revolving credit facility.
- Trade finance
- Offers a revolving credit facility
- Loans from £25,000 to £1 million
- Funding can be received within a week
- Set up fees and service charges apply
- Drawdown funds when needed
- Repay the loan when you can
- Helps to balance finances
- To be eligible you must have an Ultimate Invoice Finance facility
- Available to UK based businesses
Ultimate Finance is a financial provider that offers a wide of business finance products such as loans, asset finance, invoice finance and trade finance. They offer trade finance to UK based businesses who have an Ultimate Invoice Finance Facility which has a revolving credit facility.
Ultimate Finance’s trade finance is designed as a revolving credit facility to help businesses to balance their finances and manage seasonal fluctuations by unlocking funds in their business. You can draw down funding when you need it, not once but several times with funding being received within a week and you can repay the loan when you can.
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