{"id":2677,"date":"2020-03-22T16:38:46","date_gmt":"2020-03-22T16:38:46","guid":{"rendered":"http:\/\/localhost\/2020\/swoopMW20\/?post_type=knowledge-hub&#038;p=2677"},"modified":"2024-08-22T19:52:53","modified_gmt":"2024-08-22T19:52:53","slug":"revolving-credit-line-facility","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/revolving-credit-line-facility\/","title":{"rendered":"Revolving credit line (facility)"},"content":{"rendered":"<div class=\"aivoov-player-block\">\n\t<div class=\"read_this\">Read this article to me<\/div>\n\t\t\t<style>\n\t\t\t.plyr__controls .plyr__controls__item:first-child{\n\t\t\t\tbackground:#2e9c8e !important;\n\t\t\t}\n\t\t\t:root{\n\t\t\t--plyr-color-main:#2e9c8e;\n\t\t\t--plyr-audio-controls-background:#f0f2f4;\n\t\t\t--plyr-audio-control-color:#546a7b;\n\t\t\t}\n\t\t\t[data-plyr=\"mute\"]{color:#2e9c8e !important}\n\t\t\t.aivoov-text-color{color:#546a7b}\n\t\t<\/style> \n\t\t<div class=\"audio_player\">\n\t\t<audio class=\"js-player\" controls=\"\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/65d626a7-757a-44cc-8508-072f565487da.mp3\" type=\"audio\/mp3\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/65d626a7-757a-44cc-8508-072f565487da.mp3\" type=\"audio\/ogg\" \/>\n\t\t<\/audio> \n\t\t\t\t <div class=\"powerd_by aivoov-text-color\"><p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/aivoov.com\/?um_source=plugin_powered_by\" style=\"color: inherit;\">Powered by AiVOOV<\/a><\/p><\/div>\n\t\t \n\t\t<\/div>\n\t\t<\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><em>A revolving credit line (facility) is a rolling agreement between you (the business) and a lender <em>\u2013<\/em> in contrast to a fixed <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/business-loans\/\">business loan<\/a>. You can use it on an as-needed basis and pay it off when it&#8217;s convenient. You have a credit limit, in the same way you do with a <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/business-credit-card\/\">business credit card<\/a> or bank overdraft.<\/em><\/p>\n\n\n\n<p>Revolving credit is a type of <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/working-capital-finance\/\">working capital finance<\/a> that enables you to borrow funds from a lender at some point in the future, up to a limit.<\/p>\n\n\n\n<p>It&#8217;s rather like a flexible, open-ended loan. You pay monthly interest only on the amount you&#8217;ve used (drawn down) <em>\u2013<\/em> you don&#8217;t pay anything until you actually start tapping into the line. Your payments might be irregular, because (unlike a loan) you are not being lent a lump sum of money and charged interest right away.&nbsp;<\/p>\n\n\n\n<p>Once you&#8217;ve repaid an amount of money, you can withdraw more <em>\u2013<\/em> hence the term &#8216;revolving&#8217;. You can also think of revolving credit it as a type of loan that can be automatically renewed.<\/p>\n\n\n\n<p>If you make regular, consistent payments on your revolving credit account, your lender might agree to increase your maximum credit limit <em>\u2013<\/em> again, like a credit card or overdraft. In this sense it&#8217;s a dynamic product, compared to a non-revolving <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/line-of-credit-non-revolving\/\">line of credit<\/a>.<\/p>\n\n\n\n<p>You would expect to pay higher fees than fixed term <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/business-loans\/\">business loans<\/a> <em>\u2013<\/em> you&#8217;re paying for the convenience and flexibility.<\/p>\n\n\n\n<p>Like loans, both revolving and non-revolving credit lines come in <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/secured-loans\/\">secured<\/a> and <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/unsecured-loan\/\">unsecured<\/a> versions. You can use revolving credit lines in combination with other types of finance, for example <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/trade-finance\/\">trade finance<\/a> or <a href=\"https:\/\/swoopfunding.com\/ie\/knowledge-hub\/supplier-finance\/\">supplier finance<\/a> to help you manage supply chain funding.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A revolving credit line (facility) is a rolling agreement between you (the business) and a lender \u2013 in contrast to a fixed business loan. You can use it on an as-needed basis and pay it off when it&#8217;s convenient. You have a credit limit, in the same way you do with a business credit card [&hellip;]<\/p>\n","protected":false},"author":39,"menu_order":8,"template":"","segment":[1654],"class_list":["post-2677","knowledge-hub","type-knowledge-hub","status-publish","hentry","segment-working-capital-finance"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Read this article to me Powered by AiVOOV A revolving credit line (facility) is a rolling agreement between you (the business) and a lender \u2013 in contrast to a fixed business loan. You can use it on an as-needed basis and pay it off when it&#8217;s convenient. You have a credit limit, in the same way you do with a business credit card or bank overdraft. Revolving credit is a type of working capital finance that enables you to borrow funds from a lender at some point in the future, up to a limit. It&#8217;s rather like a flexible, open-ended&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Alexandre Colucci","url":"https:\/\/swoopfunding.com\/ie\/author\/alexcolucci\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/knowledge-hub\/2677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/users\/39"}],"version-history":[{"count":1,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/knowledge-hub\/2677\/revisions"}],"predecessor-version":[{"id":34756,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/knowledge-hub\/2677\/revisions\/34756"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/media?parent=2677"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/segment?post=2677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}