Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 02 Jul

  How Revolving Loans Work And How To Get Up To 100K

  Revolving loans for businesses of up to £100,000 are now available to UK SMEs. We explain what a revolving loan is, how it works and how it can benefit your company.

  COMPARE QUOTES NOW

  How Revolving Loans for Businesses Work and How to Get Up to £100k to Support Growth

  

  What Exactly Is a Revolving Loan For Businesses?

  A revolving loan, often referred to as a revolving credit facility, line of credit, or flexible working capital facility, enables a business to borrow up to an agreed-upon credit limit, repay what is used, and then borrow again without needing to reapply each time. It works much like a credit card facility but is tailored for business cash flow needs.

  Read more about Structured Finance Solutions for SMEs.

  An Example Of How A Revolving Business Loan Works

  For example, if your business is approved for a £100,000 revolving business loan, you can draw down any amount up to that limit, repay it, and borrow again as needed. You only pay interest on the funds you use, not on the total approved limit.

  Why Choose Revolving Loans?

  1. Flexibility to Manage Cash Flow

  Managing cash flow is one of the biggest challenges for SMEs. Whether it is paying wages, covering supplier invoices, or investing in growth opportunities, having immediate access to funds can make all the difference. Revolving loans give businesses the flexibility to:

  • Bridge short-term payment gaps
  • Cover seasonal expenses
  • Respond to sudden spikes in demand
  • Pay VAT bills on time
  • Take advantage of supplier discounts

  2. Cost-Efficiency

  Because you only borrow what you need, interest costs are kept to a minimum. Businesses avoid paying interest on funds they are not using, making it a cost-effective option compared to fixed-term loans.

  3. Multiple Drawdowns Without Reapplying

  With a revolving loan, multiple drawdowns are no problem. You can use the facility as often as needed, up to your agreed limit, without the hassle of reapplying for new finance each time.

  Learn more about the general concept of revolving credit on Investopedia.

  4. No Fixed Repayment Schedule

  Unlike term loans that require set monthly repayments, revolving credit facilities allow you to repay flexibly based on your cash flow situation. This can ease financial strain during quieter trading periods.

  5. Long-Term Financial Agility

  The Revolving Loan remains available for as long as your business needs it, subject to reviews. You only pay when the facility is in use, supporting financial agility without unnecessary costs.

  Revolving Loan Case Study About FundInvoice Supporting an EV Charger Importer

  At FundInvoice, we helped an importer of electrical products secure a revolving loan facility to support their growing business. The company imports components used in the production of electric vehicle chargers.

  They needed funding to purchase stock in advance, rather than waiting for customer orders to arrive. A revolving loan against stock was the ideal solution, as it provided them with flexible access to funds whenever they needed to purchase new inventory. As they sold stock and repaid the borrowed funds, those resources became available again, enabling them to continue buying and selling efficiently without cash flow constraints.

  This flexible facility enabled them to rapidly build up the stock levels required to meet customer demand, helping them stay ahead in the expanding EV charger market.

  Find A Revolving Loan

  We are ready to introduce UK companies to providers offering revolving loans to UK SMEs. Call us on 03330 113622 for support.

  These are flexible working capital facilities that can be used for any purpose.

  • Borrow up to £100,000 on a flexible basis.
  • Use funds for any business purpose, including managing day-to-day cash flow or seizing unexpected opportunities.
  • The account remains open for as long as you need it.
  • Pay only when in use, keeping costs low.

  This facility is particularly valuable in industries with tight margins or high competition, where the ability to react fast can create a crucial advantage over competitors.

  Revolving Loans vs Term Loans

  The following table compares the features of revolving loans with term loans:

  Feature	Revolving Loan	Term Loan
  Funds Access	Withdraw, repay, and redraw repeatedly up to your limit	One-off lump sum
  Repayment	Flexible, based on usage and cash flow	Fixed monthly repayments over a set term
  Interest Charged On	The amount you have drawn down	Full loan amount
  Best For	Working capital and cash flow management	Long-term asset purchases or expenditure

  Take Control of Your Business Finance

  A revolving business loan facility gives you the financial flexibility to:

  • Cover emergency repairs
  • Manage payroll during quiet months
  • Fund stock purchases in advance of seasonal demand
  • Invest in growth opportunities without delay

  Having this level of control over your business cash flow ensures you can focus on growth rather than worrying about short-term funding gaps.

  Interested in Revolving Business Loans for Your Company?

  If you would like to learn more about how revolving loans for companies can benefit your business, please contact the FundInvoice team today on 03330 113622. We will guide you through the available options and help you secure the right revolving loan facility for your business.

  By Glenn Blackman