Revolving Credit Facility
A credit arrangement that lets a business draw, repay, and redraw funds up to an approved limit, without reapplying each time, as opposed to a one-time lump-sum loan.
As the business repays what it draws, that amount becomes available to borrow again, which is why a revolving facility (a line of credit or a business credit card, for example) is well suited to ongoing or unpredictable cash flow needs rather than a single large purchase.
Interest is typically charged only on the amount actually drawn, not the full approved limit, which makes it a lower-cost option to keep open for flexibility even when it isn’t actively being used.
Related Terms
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.