Revolving Credit Facility
Advantages
Works similarly to an overdraft – you only draw down what you need
Only pay interest on the amount you currently have drawn down
Once repaid, funds can be utilised repeatedly without the need to reapply
Can be obtained on an unsecured basis
Ideal to ease ongoing cashflow concerns
Things to Consider
Ideally suited for short term frequent lending with quicker repayments, rather than borrowing one lump-sum for one purpose.
If a larger facility is desired, you may need to provide collateral (security) to be accepted.
How do I obtain a Revolving Credit Facility and how long does it take?
High street banks were once the more common route, but increasingly SMEs are turning to alternative finance providers for their funding requirements, including Revolving Credit Facilities. Griffiths Commercial Finance work with both the banks, and the alternative lenders, giving you the best chance of obtaining the right funding for your business. Applying through GCF is quick and easy, the first stage is to click the apply button on our website and follow the option for Revolving Credit Facilities. You will then be required to send over a few documents, at which stage the lender will underwrite the application, typically within a day or two, and provide the terms of their offer upon approval. From this stage, funding can be obtained within a couple of days, depending on whether security is required.
How does it work and how much will it cost?
An RCF works in a similar way to an overdraft, with an overdraft you pay interest on the amount you are overdrawn by. With an RCF facility you pay interest on the amount you have drawn down. If you reach the limit, you will then need to repay some of the loan before you can draw down again.
Rates can vary massively depending on factors such as the length of time the company has been trading, the credit rating of the business, and the sector of the business. Once you have filled in an application form we will be able to provide you a rough idea of the rates of suitable lenders.
What are my other options?
If you are not sure that a Revolving Credit Facility is right for your business, there are many other options, such as a Secured Business Loan, or a Merchant Cash Advance. You can find the links for those in the footer below, or if you require further advice, feel free to contact us via email: info@griffithscf.co.uk