Revolving Credit Facility

A Revolving Credit Facility is a flexible financial arrangement that provides a predetermined credit limit to a borrower, allowing them to withdraw, repay, and redraw funds as needed.

 It offers a revolving cycle of borrowing and repayment, similar to a credit card, where the borrower can access funds up to a specified limit. Interest is typically charged on the outstanding balance, and as the borrower repays the principal, the available credit is replenished for future use. This versatile financing option provides businesses with quick access to working capital and financial flexibility to manage their cash flow fluctuations and short-term funding requirements.