Revolving credit facility vs. overdraft?
An overdraft is a sort of revolving credit, in the strictest sense. Revolving credit facilities, on the other hand, refer to a particular type of lending arrangement that is geared toward businesses. Overdrafts vs. revolving credit facilities. So how does a revolving credit facility differ from an overdraft? Technically speaking, an overdraft is a form […]
3 Lenders Who Offer a Revolving Credit Facility
A revolving credit facility is a loan facility that enables you to withdraw money, use it, repay it, and then withdraw more money. As the name suggests, it is a ‘revolving’ loan that allows for flexible use and repayment. In a sense, you borrow from a pre-agreed pot, which ensures that you can borrow whenever […]
What is the difference between a revolving credit facility and a term loan?
A revolving credit facility allows you to borrow, repay, and borrow again up to a set limit, like an overdraft. A term loan provides a lump sum upfront, repaid in fixed instalments over a set period. While a revolving credit facility is a type of loan, there are some key differences that set it apart […]
How to utilise a revolving credit facility for your restaurant business
Why is a revolving credit facility suitable for restaurants? If you’re in the restaurant trade, you know all too well how it can be an unpredictable business. You might experience a period of reduced footfall, whether this is due to seasonal variations, increased competition, or any other reason. However, in spite of your reduced revenue, […]
What are the drawbacks to a revolving credit facility?
Revolving Credit Facility Borrowers pay a flat fee in order to get a set amount of money up to a specified ceiling. The borrower may get money when it is needed, with no restriction on how much is borrowed. Businesses often utilize credit facilities such as these to improve their cash flow cycle. When a […]
