Recurring rather than one-off cash-flow movements
Business Loans · UK limited companies
Revolving Credit Facilities
A revolving credit facility gives an approved business a reusable limit: funds can be drawn, repaid and drawn again subject to the agreement.
NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.
Follow the drawn balance and redraw conditions
Hypothetical cycle, not an offer: a £100,000 approved ceiling with £30,000 already drawn leaves at most £70,000 unused, before restrictions. Drawing £20,000 raises the balance to £50,000. Repaying £15,000 reduces it to £35,000, but does not guarantee £65,000 can immediately be redrawn. The agreement may impose scheduled reductions, reviews, conditions or withdrawal rights.
| Structure | Key difference |
|---|---|
| Revolving credit | Check each draw, repayment, redraw condition, review date and any clean-down or amortisation requirement. |
| Term working-capital loan | A specified advance and repayment schedule; repaid principal is not usually a reusable limit under that agreement. |
| Invoice finance | Availability follows eligible receivables, reserves, customer limits and drawings rather than the approved limit alone. |
Ask whether charges apply to drawn funds, the approved or undrawn limit, each draw or periodic review. Include arrangement, non-use and renewal charges, security and guarantees. Model a limit reduction or delayed receipt as well as normal use. Compare short-term loans and invoice finance versus overdraft.
Quick answer
When this may be worth discussing
Seasonal purchasing or supplier payments
A contingency buffer where usage may vary
Provider assessment
Information that helps produce a useful answer
Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.
- Cash-flow history and expected use of the limit
- Existing borrowing and available security
- How quickly drawings are expected to be repaid
Important:
A revolving facility can be flexible, but unused-limit fees, draw fees, review terms and provider discretion should be checked.
NBS Finance is a broker and introducer, not a lender. NBS does not charge the client a separate broker fee. Providers set costs and terms and may carry out business or director credit checks; ask which searches will be made before a full application. An enquiry does not guarantee an offer.
Revolving-credit questions
Can I redraw every repayment?
Only where the agreement and current conditions allow. Ask about review, expiry, clean-down, reductions and suspension rights.
Do I pay for an unused limit?
Some structures charge facility or non-use fees. Request the exact charging basis and minimums.
Are repayments entirely flexible?
Not necessarily. A facility may require scheduled repayments or periodic reductions as well as interest and fees.
Can a limit be reduced at review?
The agreement governs review and withdrawal rights. Plan a fallback rather than treating the approved ceiling as permanent cash.
Further reading and scope
This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.british-business-bank.co.uk.
NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.
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