Recommended by the government’s development bank, which helps SMEs get finance
Compare Revolving Credit Facility Options
Match against UK lenders in minutes. Compare flexible revolving credit line options—all in one place.
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What are Revolving Credit Line Options?
A revolving credit line is a flexible form of business finance that allows you to borrow, repay, and borrow again up to an agreed credit limit. Unlike a traditional loan with fixed monthly repayments, you only pay interest on the funds you actually use.
This type of finance is particularly useful for managing working capital, covering short-term expenses, or smoothing cash flow fluctuations. It works much like a business credit card, but often with higher limits and more tailored repayment structures.
With a revolving credit line, you can:
- Draw funds as needed and repay flexibly
- Pay interest only on the amount used
- Use the facility repeatedly without reapplying
Revolving credit line options give businesses the flexibility to manage cash flow on their own terms, making them a popular alternative to overdrafts and short-term loans.
Benefits of Revolving Credit Line Options
Revolving credit lines give businesses flexible access to funds when they need them, only paying interest on the amount drawn. Here are the key benefits of using a revolving credit facility for startups and SMEs:
Flexible Access to Funds
Draw down only what you need, when you need it—ideal for fluctuating cash flow.
Pay Interest Only on What You Use
Unlike term loans, you’re only charged interest on funds you actually withdraw.
Reusable Credit
As you repay, funds become available again without reapplying—like a business credit card.
Cash Flow Management
Smooth out seasonal dips or unexpected expenses without committing to a fixed loan.
Fast Approval & Access
Once approved, drawdowns are quick and simple—helping you act on opportunities immediately.
Builds Business Credit
Responsible use and timely repayments can strengthen your company’s credit profile.
About Funding Options
Funding Options is our UK partner that makes it simple to compare revolving credit facilities and other forms of business finance. With one quick application, their Funding Cloud technology assesses your business profile and matches you with lenders offering tailored revolving credit loan options—so you can review rates, terms and eligibility in minutes without affecting your credit score.
Whether you’re exploring what a revolving credit facility is, need a revolving credit loan to manage cash flow, or want to compare revolving credit line options alongside other business finance products, Funding Options helps you find the right fit. From flexible revolving credit to unsecured and secured loans, invoice finance, merchant cash advances, bridging and commercial property finance—you can compare the best options in one place.
How to Compare Revolving Credit Facilities in Minutes
Startupdeals.co.uk has Startupdeals.co.uk has partnered with Funding Options to give you fast access to more than 120 UK lenders through one simple form. Their Funding Cloud technology reviews your business profile and instantly returns tailored matches across business finance products so you can compare revolving credit facilities and other loan options quickly and confidently. It’s free to apply, and the initial checks do not affect your credit score.
Tell us about your business
Share how much you need, what it’s for, and key details so we can compare business loans matched to your profile.
Compare quotes instantly
Funding Options compare your details against 120+ lenders so you can see tailored finance quotes in seconds.
Apply and get your funding
Apply for finance and initial checks won’t affect your credit score. Receive funds into your account.
Choosing the right loan type
Your goals, cash flow and security available will shape the best fit. Use the tiles below to compare loan types and to explore wider business finance options.
Unsecured Business Loans
Borrow without collateral. Quick decisions; may require a personal guarantee.
Secured Business Loans
Backed by assets for lower rates and larger amounts.
Working Capital / Short-Term Finance
Cover day-to-day costs and short cash-flow gaps.
Revolving Credit Facility
Flexible line of credit — pay interest only on what you use.
Asset Finance
Hire purchase or leasing for vehicles, machinery and equipment.
Invoice Finance
Release cash tied up in invoices (factoring & discounting).
Merchant Cash Advance
Repay via a % of future card sales — flexible with turnover.
Commercial Property Finance
Commercial mortgages & development finance.
Bridging Loans
Short-term funding to bridge a purchase, sale or refinance.
Growth Guarantee Scheme
Government-backed lending via accredited providers.
Bad-Credit Business Loans
Options for thinner files or weaker credit profiles.
Startup Business Loans
Funding to launch or grow a new business—often unsecured, with flexible criteria for early-stage companies.
Who Can Take Out a Revolving Credit Facility?
- Business types
- Sole traders, partnerships/LLPs, limited companies, and some nonprofits/social enterprises can all apply for a revolving credit facility.
- Stage of business
- Trading 6–24+ months: Widest choice of revolving credit facility loans and sharper pricing.
- New/pre-revenue: Fewer revolving credit line options are available, but some startup-focused lenders do exist.
- Financial profile
- Lenders look for Lenders assess affordability—steady cash flow, sensible debt levels, and clean bank activity. Adverse credit isn’t an automatic “no,” but it may limit revolving credit facility choices or result in higher pricing.
- Directors & owners
- Expect ID and address checks, UK residency in many cases, plus credit checks on directors/major shareholders. Personal guarantees are common for SMEs, especially with unsecured revolving credit loans.
- Security & guarantees
- Unsecured: Faster, simpler, and often requires only a personal guarantee.
- Secured:Uses assets (property, equipment, receivables) to unlock larger revolving credit facilities at lower rates—but assets are at risk if repayments aren’t met.
- Use of funds
- A revolving credit facility can be used for working capital, stock, equipment/vehicles, fit-outs, marketing, refinancing, or consolidation. Some restricted uses may apply depending on the lender.
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FAQs: Business Loans (UK)
What is a revolving credit facility?
A revolving credit facility is a type of flexible loan that allows businesses to draw down funds, repay them, and borrow again up to an agreed limit—similar to a revolving line of credit.
How does a revolving credit facility work?
A revolving credit facility works like a credit limit: your lender sets a maximum amount you can borrow. You only pay interest on the funds you use, and once repaid, the credit becomes available again.
What is the difference between a revolving credit facility and a term loan?
A term loan provides a fixed lump sum with set repayments, while a revolving credit facility gives ongoing access to funds that can be borrowed, repaid, and reused as needed.
Who can apply for a revolving credit facility?
Sole traders, SMEs, partnerships, and limited companies can apply for a revolving credit facility. Lenders usually look at trading history, credit score, and affordability.
What are the benefits of a revolving credit facility?
Key benefits of a revolving credit facility include flexibility, quick access to working capital, interest charged only on funds used, and reusable credit.
What are the risks of a revolving credit facility?
Risks of a revolving credit facility include variable interest costs, potential overreliance on borrowing, and personal guarantees for unsecured facilities.
Is a revolving credit facility the same as an overdraft?
They are similar, but overdrafts are tied to your business bank account, whereas a revolving credit facility is a separate finance product with potentially higher limits and more structured terms.
How much can I borrow with a revolving credit facility?
Limits vary depending on your business profile, but many UK lenders offer facilities ranging from £10,000 to £5 million.
What can a revolving credit facility be used for?
It can be used for working capital, payroll, stock purchases, equipment, marketing campaigns, refinancing, or cash flow gaps.
What are the eligibility criteria for a revolving credit facility?
Most lenders require at least 6–12 months of trading history, proof of revenue, a UK business bank account, and credit checks on directors/owners.
What is the difference between a revolving line of credit and a revolving credit facility?
Both terms are often used interchangeably. In practice, a revolving line of credit usually refers to smaller, short-term facilities, while a revolving credit facility may be larger and structured for SMEs and corporates.
Can startups get a revolving credit facility?
Startups may face limited options but can still access smaller revolving credit loans from lenders who specialise in early-stage businesses.
Is a revolving credit facility secured or unsecured?
It can be either. Unsecured facilities require only a personal guarantee, while secured options use business assets (like property or receivables) as collateral.
How do I compare revolving credit line options?
The best way is to use a finance comparison platform or broker, which matches your business profile to multiple lenders, so you can compare rates, terms, and repayment flexibility in one place.
FAQs: About Funding Options
Is Funding Options a lender or a broker?
Funding Options is a broker. They compare business loans in the UK from multiple providers and match you with suitable lenders. They don’t lend directly.
Does using Funding Options affect my credit score?
No — Funding Options uses soft checks when matching you with lenders, so your credit score isn’t impacted at the initial stage. A hard check may only occur if you proceed with a lender application.
How does Funding Options match my business to lenders?
They use Funding Cloud™ technology, which reviews your business profile, financial details, and needs, then matches you with tailored funding options from over 120 lenders.
Are there any fees for using Funding Options?
There are no fees for applying. Funding Options is free to use, and they are paid by the lenders once your finance is successfully arranged.
Can startups use Funding Options?
Yes — Funding Options works with lenders who provide finance for startups as well as established businesses. Options may vary depending on your stage of trading.
How fast can Funding Options help me secure funding?
You can get matched instantly and, in many cases, receive tailored quotes within minutes. Funding can be approved and released in as little as 24 hours.
What loan types can I compare through Funding Options?
You can compare a wide range of products, including business loans, asset finance, revolving credit facilities, invoice finance, merchant cash advances, bridging loans, and more.
Is Funding Options safe to use?
Yes — Funding Options is FCA-regulated, secure, and trusted by thousands of UK businesses. They are also recommended by the British Business Bank.
How many UK lenders can I access through Funding Options?
Funding Options connects you with over 120 UK lenders, ranging from high-street banks to alternative finance providers, giving your business the widest choice of funding options.
FAQs: About Startup Deals
Do StartupDeals provide business loans directly?
No — StartupDeals does not lend money directly. We work as an introducer partner with Funding Options, who connect UK businesses to more than 120 lenders through their regulated platform.
Is StartupDeals paid by Funding Options?
Yes — if you are successfully matched with a lender and take out finance, StartupDeals may receive a commission from Funding Options. This comes at no extra cost to you as the customer.
Can I trust StartupDeals when applying for a business loan?
Yes — StartupDeals is a trusted affiliate partner of Funding Options. Funding Options is FCA-regulated, and all loan applications are handled securely by them, ensuring compliance and transparency.
Why does StartupDeals recommend Funding Options?
At StartupDeals, our goal is to help startups, sole traders, and SMEs access the tools and services they need to grow. We recommend Funding Options because they provide access to a wide network of over 120 UK lenders — from high street banks to specialist and alternative finance providers. This means that instead of applying to lenders one by one, businesses can complete a single application and quickly see tailored funding options side by side.
Funding Options also uses secure technology to match businesses with lenders most suited to their profile, making the process faster and more efficient. For startups, this can be particularly valuable, as many lenders on the platform specialise in supporting early-stage businesses.
By partnering with Funding Options, we can introduce our audience to a trusted, FCA-regulated broker where they can explore some of the best business loan options in the UK, compare rates and terms, and find funding that may fit their circumstances — all in one place.
Does StartupDeals decide if my business loan is approved?
No — StartupDeals does not make lending decisions. All applications are assessed by Funding Options and their panel of lenders. Approval depends entirely on the lender’s criteria.
Is StartupDeals regulated to provide credit?
StartupDeals does not provide credit directly and is not a lender. We act as an introducer to Funding Options, who are FCA-regulated and work only with authorised UK lenders.
Will it cost me extra to use StartupDeals?
No — you won’t pay any additional fees by applying through StartupDeals. If you proceed with a loan, StartupDeals may receive a commission from Funding Options, but this does not affect the cost of your finance.
Who handles my data if I apply for a loan?
Your loan application and personal data are handled securely by Funding Options, not StartupDeals. They use regulated systems and strict data protection measures to keep your information safe.
Does StartupDeals provide financial advice?
No — StartupDeals does not provide personalised financial or lending advice. We introduce businesses to Funding Options so they can compare loan options. All content on StartupDeals.co.uk is created to be impartial and informative. It is designed to help startups and SMEs explore tools, services, and funding options available in the UK. The information is not intended as financial advice. For tailored guidance, you should seek advice from a qualified financial professional.
Disclaimer: The content on this website is intended for informational purposes only and should not be construed as legal, financial, or professional advice. While we strive to ensure that the information is accurate and up-to-date at the time of publication, please be aware that regulations and circumstances may change. We recommend consulting with a qualified professional for personalised guidance specific to your situation. Additionally, some links on this website may be affiliate links, meaning we may earn a commission if you make a purchase through those links. Please ensure you read and understand all terms and conditions before making any decisions.