If you’re an entrepreneur looking to scale your business and you’re in need of added flexibility, it’s likely that an RCF could be the financial solution you’re looking for.
Not only are revolving credit lines a great choice for short-term finance, or to have in place as a contingency plan should business trading be impacted, but they’re flexible, fast, and designed to support a business as it grows. Some key benefits of RCFs are:
Draw down when it suits you
There may be times when you don’t need to draw down on your revolving credit at all, or others when you draw down and pay back multiple times in a month. Whatever you choose, the control is in your hands. And best of all, when you’re not using your finance, you won’t pay any interest on it.
Finance to match the ebbs and flows of your business
You may need to release cash flow to manage unpredictable trading periods, seasonality or expansions and growth plans – whatever you need working capital for, an RCF is there when you need it, on your terms. And if you’re growing faster than planned, your revolving credit could grow with you – if you can repay your debt timely and consistently, there’s a strong chance, you’ll be able to increase your maximum limit, without refinancing.
No charges for early repayment
Because you pay back to replenish your funds there are no early repayment fees with an RCF.
Only pay back interest on what you’ve used
Even if you agree to a large credit limit, you’ll only pay interest on the amounts you have drawn, not the total amount lent.
Fast access to financing
Applications for revolving lines of credit are usually quicker than more traditional business loans, however, it’s likely lenders will still need to go through a legal process and all conditions before funds can be drawn.
Save time on loan applications
Rather than refinancing every time you need additional funds, simply dip back into your revolving credit loan without the additional paperwork or admin.
You’re not locked in for years
RCFs are great short terms solutions, designed to flex with a business’ needs. You can take them out and repay them as soon as you wish. Their flexibility however does make them a bit more expensive than fixed term business loans.
