Understanding UK revolving credit: flexible finance for brokers and their clients

Alternative Bridging Corporation explains how revolving credit can help small businesses and property professionals manage working capital and respond to time-sensitive opportunities.

A revolving facility provides an agreed credit limit from which a borrower can draw funds, repay and draw again. Unlike a term loan, it is not fixed from the start, and unlike a business credit card it suits larger sums and direct cash access. Interest is charged only on money actually drawn, which can make it more economical for businesses whose needs change month to month.

The lender says this is particularly useful for clients with irregular or seasonal income, unexpected costs or staged spending, such as developers covering costs between project phases or firms meeting payroll while awaiting payments. Other flexible options include invoice finance, merchant cash advances and supply chain finance, each suited to different circumstances.

Brokers are encouraged to consider whether a client needs secured or unsecured borrowing, what their cashflow patterns look like, whether flexible or structured repayments suit them better, how the money will be used and how quickly it is needed, as well as how clear the lender's drawdown and repayment process is.

The firm's own Alternative Overdraft works on a similar revolving basis and is aimed at property professionals. In one case, a client needed £580,000 to buy artwork for a gallery and refurbish nightclubs in London and Brighton, but not all at once. Despite a missing EPC on the security property, its remote location and a tight timescale, the facility was set up within three weeks as a second charge on the client's home, allowing him to draw, repay and redraw as each project progressed.

Alternative Bridging Corporation notes it has worked with brokers for more than 30 years.

Source: Alternative Bridging Corporation, original article (15 May 2025)