Revolving Credit Facilities

A Revolving Credit Facility is a flexible loan arrangement where a borrower can borrow, repay, and redraw funds up to a set credit limit as needed. Think of it like a revolving line of credit, similar to a credit card, allowing continuous access to funds without renegotiating terms each time. It provides businesses with liquidity for ongoing expenses, short-term needs, or emergencies, and interest is typically paid only on the amount borrowed. Once repaid, the available credit replenishes, offering flexibility in managing cash flow and financial planning.