Revolving credit facilities for changing needs

A revolving credit facility is a committed, flexible credit line that a business can draw, repay and redraw as its needs evolve, without fixed drawdown schedules. This page explains how the facility works, how it is structured and when a flexible credit line may fit.

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What a revolving credit facility is

A revolving credit facility is a committed, flexible credit line that can be drawn, repaid and redrawn as business needs evolve. It works without fixed drawdown schedules and sits within the Capital & Liquidity category.

Who it suits

Cash-flow profile: profitable businesses with predictable cash flows but changing or seasonal working-capital needs.

Use case: replacing or supplementing an overdraft, or keeping funding available for planned investment or an acquisition. A committed credit line may be relevant where requirements change rather than arise as one fixed borrowing need.

These are factors to discuss, not a guarantee of eligibility. All finance is subject to status and provider criteria.

Draw, repay, redraw

The distinguishing mechanism is the ability to draw, repay and redraw as needs evolve. A short-term loan, by comparison, is a fixed facility for a defined purpose, repaid over an agreed term.

We arrange both products and tell you which fits before approaching a lender. Start with what your business needs rather than assuming that one product is the answer. We structure the requirement first and then present the options clearly, so you do not negotiate blind.

Why an independent broker, not your bank

Independent

We have no balance sheet to protect and no product to push. We work independently, matching the requirement to the right lender rather than starting with a product to sell. The conversation starts with what your business needs, not with an existing lending product.

An independent approach means the finance requirement comes first. Trade finance, business lending and capital & liquidity are different funding disciplines, and we tell you which fits before approaching a lender. We present the options clearly and without bias, so the choice remains with your business.

Fast

We take your opportunity to the right lenders simultaneously, creating genuine competition and compressing timelines. This describes how we approach the market, not a promise about an approval or drawdown date. The facility is structured before the opportunity is put to the right lenders.

The purpose of approaching lenders simultaneously is to bring back options that can be reviewed together. We negotiate on your behalf and present those options clearly. Rather than negotiating blind, you can review the offers in the context of the requirement we have already discussed and structured.

Precise

We design the deal before we approach a lender: size, tenor, security and covenants. The structure comes first, so the opportunity we take to market reflects what your business needs. We then match the requirement to the right lender without unnecessary structure or cost.

The starting point is a conversation about your business and what you want to achieve. The product name is only part of that conversation. We identify the right structure and prepare the opportunity properly before going to market, then explain the options clearly before you choose.

How it works

Tell us what you need
Tell us about your business and what you are looking to achieve. The starting point is the requirement rather than a finance product. We take the time to understand your business properly and tell you which funding discipline fits before approaching a lender.
This conversation gives us the context for structuring the facility. We work across trade finance, business lending and capital & liquidity, so the discussion can start with the business need rather than assuming that a particular product is the answer.
We structure your facility
We identify the right structure and prepare your opportunity before approaching lenders. The deal is designed first: size, tenor, security and covenants. We match the requirement to the right lender without unnecessary structure or cost, keeping the business need at the centre of the process.
Once the opportunity has been prepared, we approach the right lenders simultaneously. That creates genuine competition and compresses timelines. We negotiate on your behalf, with the structure of the facility established before the opportunity is taken to market.
Review your offers
We bring back competitive options from lenders, presented clearly and without bias. You choose. The offers are reviewed against the requirement and the structure of the facility, rather than treating every offer as the same product. We tell you which fits before approaching a lender.
Our role is to present the options clearly so you do not negotiate blind. We are an independent broker, not a lender. The choice remains with your business, and the facility remains subject to status and the requirements of the finance provider.
We close it
We manage the process through to drawdown, coordinating lenders, lawyers and paperwork. This is the final step in the same process that began with understanding the business need. Our role continues through the placement of the facility, rather than ending when offers are presented.
Tell us what you need, let us structure the facility, review the offers and choose the option that fits. We then manage the steps through to drawdown. All finance remains subject to status; guarantees and indemnities may be required.

Download product sheet (PDF)

Frequently asked questions

What is a revolving credit facility?

A committed, flexible credit line that can be drawn, repaid and redrawn as needs evolve.

Is there a fixed drawdown schedule?

No — an RCF works without fixed drawdown schedules.

How is the facility structured?

We design the deal before approaching any lender — size, tenor, security and covenants.

RCF or short-term loan?

A short-term loan is a fixed facility for a defined purpose repaid over an agreed term; an RCF can be redrawn as needs evolve.

Is Oku Financial a lender?

No. Oku Financial is a commercial finance broker. We work with a panel of lenders to find funding for UK businesses.

What facility size may be available through a revolving credit facility?

Revolving credit facilities are available from £250k with mainstream lenders. All figures are indicative and subject to status.

What costs may apply to a revolving credit facility?

The interest rate is a 2–5% margin over SONIA on drawn amounts. A commitment fee may be 30–50% of margin on undrawn amounts, with an arrangement fee of 0.5–2% of facility size. All figures are indicative and subject to status.

Related finance pages

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