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Revolving credit facility
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Cash flow challenge: I need flexible access to funds to manage short-term working capital needs.
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Perfect for: UK businesses that want an ongoing, reusable line of credit to smooth out day-to-day cash flow without reapplying every time.
A revolving credit facility gives businesses flexible access to funds for everyday operational needs, without committing to long-term debt or disrupting cash flow.
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Rates from 0.5%
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Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
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Pages in this SectionWhat is a revolving credit facility?
A revolving credit facility is a flexible form of business borrowing, often called a revolving line of credit. It gives your company an agreed credit limit you can draw from whenever you need to and repay and re-borrow without applying again.
You only pay interest on the amount you've drawn, not the full limit. In that sense, an RCF works like a larger, more structured business overdraft, with clearer terms and more control.
Most UK lenders offer revolving credit facilities from around £50,000 up to £1 million, typically over a 12 to 24 month term, with the option to extend.
How a revolving credit facility works
A revolving credit facility works a bit like a business credit card or overdraft, but with a larger, pre-approved limit.
Here's a worked example:
- Your business is approved for a revolving credit facility with a £250,000 limit.
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You draw down £80,000 to cover a large supplier bill.
- Interest is charged only on the £80,000 you've drawn, not on the full £250,000.
- A month later you repay £30,000. Your available balance goes back up to £200,000.
- You can draw on the available balance again, at any time, without reapplying right up to the end of the agreed term.
The facility "revolves" for the length of the agreement, so the same credit line keeps working for you as cash comes in and goes out.
Revolving credit facility vs business overdraft
For many growing UK SMEs, a revolving credit facility is the natural next step up from an overdraft once borrowing needs go beyond £50,000.
| Revolving credit facility | Business overdraft |
| Higher limits — typically £50k to £1m |
Usually £5k to £50k |
| Pre-approved for an agreed term | Can be reduced or withdrawn at short notice |
| Clearer, committed terms | Terms can be reviewed by the bank at any time |
| Available from specialist lenders, not just your bank |
Tied to your business current account |
| Interest on funds used, plus a small non-utilisation fee |
Interest and arrangement fees on the agreed limit |
Benefits of a revolving credit facility
- Flexible access to capital
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Interest charged only on utilised funds
- Supports seasonal or irregular cash flow
- Reusable funding without reapplication
- Improves liquidity management
- Can complement existing term loans or asset finance
When a revolving credit facility may not be the right choice
- You need a single lump sum for a one-off purchase, a business loan is usually cheaper.
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The borrowing need is long term (5+ years) a long term loan or asset finance will typically be better value.
- You're buying specific equipment or vehicles, asset finance secures against the item and keeps rates lower.
How it works with Novuna Business Cash Flow
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Tell us about your project and funding requirements
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We compare specialist lenders to find you a great deal
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You apply with full support from our experts
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Access funding as and when you need it, repay and reuse on demand
Fast decisions. Flexible options. Funding over £2bn to more than 1,000 SMEs every year.
Is a revolving credit facility right for you?
You need flexible funding to cover operational costs
A revolving credit facility lets you draw funds as needed and repay on your own schedule.
You want to smooth out seasonal or irregular cash flow
Ideal for businesses with fluctuating income, helping balance peaks and troughs.
You’d prefer not to reapply for finance every time you need it
Once approved, you can access funds repeatedly without going through new applications.
If that sounds like your business, we’ll help you compare providers and secure the right deal.
Novuna can support businesses with a range of funding challenges
What is your challenge?
I want to pay suppliers early without harming cash flow
I’ve won a large order but need help with materials
I need flexible credit terms with my suppliers
I want funding to stock up before peak demand
How we help
How Novuna helps businesses access funding fast
Tell us what you need
Start with a simple form or call - tell us your business challenge.
We compare your options
We compare multiple providers to get you a great deal.
Choose the right type of funding
Access a range of short-term funding options including loans, advances, and invoice finance.
Apply with expert support
Get help applying - with a real expert on hand throughout.
Get clear, transparent terms
No jargon, no surprises - just honest advice with no hidden fees.
Receive funding fast
Get access to finance quickly so you can focus on your business.
Why take action now
Bridge short-term gaps without locking into long-term debt
Access funds instantly when challenges or opportunities arise
Act before seasonal peaks, supplier payments, or new investments hit your cash reserves
Why choose Novuna Business Cash Flow?
Why businesses trust us for debt factoring
We're highly rated by our existing customers
"The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.'
More reviewsWe're a multi-award winning business cash flow specialist
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What revolving credit facility looks like in your sector
Get advice tailored to the challenges in your industry
How is a revolving credit facility different from a traditional loan?
A traditional loan gives you a lump sum that you repay on a fixed schedule. A revolving credit facility gives you a pre-approved limit you can draw on, repay, and draw again and you only pay interest on what you use.
Does using a revolving credit facility affect my business credit rating?
Applying for any credit will show as a search on your company's credit file. Used responsibly drawn, repaid and kept within the limit, an RCF can actually strengthen your business credit profile over time.
Is revolving credit facility suitable for small businesses?
Yes, particularly SMEs with seasonal or irregular cash flow, or those winning larger orders that need upfront working capital. Most providers require at least 12 months of trading and a minimum turnover of around £100,000.
How quickly can I access funds?
Once the facility is approved, funds can usually be drawn down instantly, giving you fast access to working capital whenever you need it.
