Line of credit (non-revolving)

Quick facts

A line of credit is like a business loan that’s ready to go. It’s an agreement with a lender that lets you borrow on an as-needed basis and pay back when it’s convenient. You have a credit limit, in the same way you do with a business credit card or bank overdraft. A revolving credit facility, on the other hand, is a ‘rolling’ type of line of credit.

A non-revolving line of credit has similar features to revolving credit (or a revolving credit line). In both cases you agree a credit limit with a lender, you can use the funds for a variety of purposes, you pay interest, and you can make payments at any time, as documented in your agreement with the lender.

There is one major difference: with a non-revolving line of credit the pool of available credit does not replenish after you’ve completed your payments. Rather, once you pay off the line of credit in full, the lender closes the account and you can’t use it again. So, unlike revolving credit, a non-revolving line of credit is a static product – or a one-off financial arrangement. When you have reached your credit limit, you cannot borrow more.

Both revolving credit and non-revolving credit lines come in unsecured and secured versions.

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Disclaimer: Swoop Finance helps South African firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop Finance (Pty) Ltd is registered with CIPC in South Africa (company number 2023/820661/07, registered address 21 Dreyer Street, Cape Town, South Africa, 7708).

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