A revolving credit facility is a type of working capital loan that enables businesses to quickly draw down or withdraw funds, repay, and withdraw again. You have a credit limit, just as you would with a business credit card or bank overdraft.
It’s popular among businesses that need to boost their cash flow and working capital needs, so you might use it for short-term financing that you plan to pay off quickly.
A revolving credit line is a flexible, open-ended loan unsecured business loan. With the option to borrow money, pay it back, borrow some more, and so on, for the agreed duration of the term. Once you’ve repaid whatever you’ve used, you can withdraw more.
The lender tells you the maximum amount you can spend and you then have the freedom to decide how much you borrow and pay back each month. Options for new business loans and businesses that have been trading for 3+ months.