Revolving Credit Facility

Revolving credit can be compared to a traditional bank overdraft. Ideally it should be used to cover fluctuating financial requirements within the month. Typically this will allow creditors to be paid including GST, PAYE etc pending collection of debtors between the 20th and the end of the month. This facility can also be used as a “standby” to cover unforeseen eventualities.

The facility can be repaid and redrawn on any business days by notifying us before midday on the day the funds are required.

A Revolving Credit Facility typically has a slightly lower interest rate than Term Finance but due to the fluctuating nature of the facility and our commitment to have the funds available if required does attract a monthly line fee payable in advance. And because the facility is fluctuating (and thus the interest amount changes each month) interest is charge by direct debit at the end of each month.

Well managed a Revolving Credit Facility will allow considerable interest savings over the year by returning surplus cash into the facility when available and redrawing it when required.