Keep your business growing with a flexible revolving credit facility option
Arrange a revolving credit facility of up to £5million with First Oak
A revolving credit facility gives your business the flexibility to draw down working capital, pay it back and withdraw it again as required. You can use it to support growth, acquisitions, or to strengthen your working capital position.
This can be used as an alternative to invoice finance as it is usually secured against your accounts receivable. However higher limits can also be arranged if you hold significant stock or assets on your balance sheet that could also be leveraged.
Revolving credit facilities provide an alternative form of business funding to companies who need ongoing funds fairly regularly but without the pain and scrutiny of a traditional bank loan application.
This type of facility can also grow with your business, so that as your debtor book grows, so does the potential credit limit made available to you.
Revolving Credit Facility Benefits
- Drawdown and repay as it suits you
- Flexible enough to be used for any business need
- Fills cash flow gaps when waiting for payment
- Speed and ease of access
- Only pay interest on the outstanding daily balance
- Managing seasonal fluctuations
- Supports growth
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A revolving credit facility has similarities to an overdraft, except it is separate to your bank account. You will be able to draw down funds when you require them up to a pre-determined credit limit and repay them again as often as you like on a continually revolving basis. For companies who require more liquidity when value is tied up in assets, invoices and stock, this may be an extremely effective option to help manage the opportunities and emergencies as they occur.
As it is so flexible, a revolving credit facility can be used for almost anything. Whether you choose to use it for large one-off payments or to support regular cash flow, it is entirely up to you. Businesses often wish to refinance existing debt or to cover challenges due to seasonality.
RCF finance stands for Revolving Credit Facility and is the same option.
A RCF is a type of loan that allows a business to borrow and repay funds as needed, rather than having to secure a new loan each time it needs financing.
Some revolving credit facility providers may allow a business to increase its credit limit as it grows.
The amount a business can borrow with a revolving credit facility will depend on the lender and the business’s creditworthiness.
The lenders that we can introduce you to, do not often require one. Providing your credit history is relatively sound, the security they are looking for is tied to your debtor book, stock or assets
Any business who is a B2B firm, has a minimum turnover of at least £500k and a proven business model. Even if currently loss making, providing profitability is forecast against acceptable growth predictions.
There aren’t too many, however you may need to pay the lender an arrangement fee and if your credit profile is less than perfect, a directors personal guarantee may be required. This is a short term finance option, so if you’re looking for something more long term, this might not be the cheapest option for you.