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Business loansLast updated: 28 Jul 2026
Compare revolving credit facility options from UK lenders
A revolving credit facility is reusable business funding that lets you borrow, repay and borrow again up to an agreed credit limit, without reapplying. It gives you flexible access to cash when you need it, and you only pay interest on what you use.
Why get a revolving credit facility with Capitalise?
200,000+ UK businesses trust us
Business credit data powered by Experian
£2bn in funding approved
FCA regulated since 2016
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What is a revolving credit facility?
A revolving credit facility gives your business an agreed credit limit that you can draw against whenever you need to. Once you repay what you've borrowed, that amount becomes available to draw again, without a fresh application. You're only charged interest on the money you've actually drawn down, not on the full limit sitting unused. It works in a similar way to a business credit card, but usually comes at a lower cost and with a higher limit. It suits businesses that need to regularly top up stock, cover fluctuating staff costs, or smooth out cash flow gaps that come and go throughout the year.
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How does a revolving credit facility work?
A revolving credit facility works by giving your business access to a pre-approved credit limit based on your turnover and financial position. You can draw down funds whenever you need them, only pay interest on the amount you've borrowed, and repay at a pace that suits your cash flow. As you repay, your available credit is restored, allowing you to borrow again throughout the term, typically 6–24 months. At the end of the term, your lender will usually review the facility and may renew or increase your limit.
Why choose a revolving credit facility for your business?
You’re charged only on what you borrow
You have the freedom to draw down as much or as little as necessary, whenever you need it.
Easy renewals
Once your term ends, you can easily renew and access more funds if required.
Flexible terms
You can choose terms between 6 to 24 months to suit your business needs.
No early repayment fees
Pay back what you use without worrying about any additional fees for early repayment.
How much can you borrow with a revolving credit facility?
Most businesses can borrow the equivalent of around one month's turnover, though this varies lender by lender and can be extended once you've built up a track record of repaying on time. The table below shows what to expect across the Capitalise lender panel.
Feature | Typical range |
|---|---|
Credit limit | Usually around 1 month's turnover, higher limits available for established businesses |
Interest rate | From around 1% to 4% a month on funds drawn, roughly 12% to 50%+ representative APR depending on risk |
Arrangement fee | Typically 1% to 3% of the agreed limit, varies by lender |
Repayment term | 6 to 24 months, renewable |
Funding speed | As little as 48 hours after approval |
Early repayment fees | None on most facilities across our panel |
Security | Available secured or unsecured depending on your business and the amount requested |
A stronger business credit score and healthy, profitable accounts usually unlock a higher limit and a better rate. Securely connecting your bank account as part of your application also helps, since lenders like to see recent, real time data before deciding.
How do you get a revolving credit facility with Capitalise?
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Tell us about your business
We'll ask a few questions about your turnover, how much you want to borrow and what it's for.
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Get matched with lenders
Your application is matched against our panel of 130+ lenders who fit your business profile.
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Speak to a funding specialist
A dedicated Capitalise funding specialist guides you through the process and answers any questions along the way.
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Lenders review your application
Your funding specialist sends your application to multiple matched lenders, who assess it and decide whether to make an offer.
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Accept an offer and get funded
If approved, funds can reach your account in as little as 48 hours.
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Draw, repay and reuse
Draw down what you need, repay it, and the same amount becomes available again, up to your agreed limit.
What are the advantages and disadvantages of a revolving credit facility?
Advantages | Disadvantages |
|---|---|
Interest only applies to the funds you draw down, not your entire credit limit. | Carrying a balance over time can cost more than a one off loan repaid on a fixed schedule. |
Once you repay what you owe, the full limit becomes available again straight away. | The flexibility that makes it useful can also make it easy to build up debt if you're not tracking usage. |
Funds can land in your account within 48 hours once approved, useful when costs land unexpectedly. | Some lenders charge an arrangement fee, and a smaller number apply a fee on the unused portion of your limit. |
Pay back what you use, whenever you use it, without extra charges for clearing it early. | Carrying a high balance or missing a repayment can affect your business credit score and future borrowing. |
Who uses a revolving credit facility?
Retailers and wholesalers
Top up stock ahead of busy periods without waiting for cash flow to catch up.
Hospitality businesses
Manage seasonal dips in trade without cutting back on staff or supplies.
Construction and trade businesses
Cover materials and wages between client payments.
Manufacturers
Buy raw materials at short notice to take on a new order.
Agencies and consultancies
Cover payroll and overheads while invoices are still outstanding.
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What do you need to apply for a revolving credit facility?
When applying for a revolving credit facility, lenders will typically ask for:
Before applying, check your business credit profile to make sure you're in a strong position.
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Am I eligible for a revolving credit facility?
Most lenders on the Capitalise panel assess:
Revolving credit facilities are usually offered to limited companies, so if you're a sole trader, a business loan or an overdraft may be more accessible. Don't meet every criteria above? Capitalise also works with specialist lenders who consider businesses with a shorter trading history or an imperfect credit record.
Find out your eligibility for a revolving credit facility
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