Understanding UK revolving credit: flexible finance for brokers and their clients

UK Revolving credit isn’t always the first option business owners think of when they need funding, but for many small businesses and property professionals, it can offer flexible finance and a practical way to manage working capital and respond to time-sensitive demands.

In simple terms, a revolving credit facility allows a business to borrow what it needs, repay when it suits them, and then draw down funds again, all within an agreed limit. Unlike a term loan, it isn’t fixed from the outset. And unlike a business credit card, the facility is typically more suited to larger sums and direct access to cash.

For brokers, it’s a helpful solution to consider when working with clients who face irregular income, seasonal peaks, or unexpected costs. It provides more flexibility than a standard loan and could be a better fit for those who need funding in stages rather than all at once.

How revolving credit works in practice

A revolving credit facility gives the borrower access to an agreed pot of money. They don’t have to use the full amount in one go, and interest is only charged on the funds actually drawn. That makes it a more cost-efficient option in many cases, especially for businesses whose funding needs vary month to month.

At Alternative Bridging Corporation, we offer a product that works in a similar way. Our Alternative Overdraft provides flexible short-term finance that mirrors the structure of a revolving facility, but it’s designed with property professionals and brokers in mind. Borrowers can access funds when needed without going through a fresh application each time, which saves time and simplifies cashflow planning. Find out more about our Alternative Overdraft facility here.

Meeting the needs of property professionals

In property, timing is everything. Whether it’s securing a new opportunity, bridging a delay in sales, or covering build costs, having access to finance at the right moment can make a real difference.

A revolving facility offers:

• A pre-agreed credit limit
• Access to funds in stages
• Interest is charged only on what is drawn
• Reusable funds once repayments are made

This gives clients the breathing space they need, without locking them into a one-size-fits-all loan.

When this type of facility works best

UK Revolving credit is often a good fit for businesses facing short-term cashflow gaps or irregular income. It can be especially useful for property developers who need to cover costs between project phases, or for small businesses managing payroll while waiting for incoming payments.

This type of facility works well when income is seasonal, expenses come in stages, or funding needs shift over time. Instead of committing to a larger loan than necessary, borrowers can draw down only what they need, when they need it, keeping costs under control and maintaining flexibility.

Other flexible funding options to consider

Revolving credit isn’t the only way to access flexible finance. Depending on the business model, there are other short-term funding options that may suit:

• Invoice finance – useful for businesses waiting on customer payments
• Merchant cash advances – often used in retail and hospitality
• Supply chain finance – supports supplier payments and stock orders

Each of these has its own terms, and the right option will depend on the client’s circumstances and cashflow cycle. For more insight into our wider lending range, visit our product overview page.

What brokers should keep in mind…

Before recommending a facility like this, it helps to ask a few key questions:

• Is the client looking for secured or unsecured finance?
• What are their typical cashflow patterns?
• Will they benefit from flexible repayments or do they need more structure?
• How do they plan to use the funds, and how quickly do they need them?

It’s also worth checking whether the lender offers a clear, easy-to-follow drawdown and repayment process. That clarity can make a big difference in practice.

Real example: Alternative Overdraft for business investment

An entrepreneurial client recently turned to our Alternative Overdraft to support two very different business needs: acquiring artwork for his gallery and refurbishing two nightclubs in London and Brighton.

The client required £580,000, but didn’t need the full amount upfront. The flexibility of a revolving-style facility meant he could draw funds as required and only pay interest on what was used, ideal for funding the project in stages.

There were a few hurdles to overcome. The property being used as security did not have a valid Energy Performance Certificate (EPC) at the outset, and its remote location added complexity. Timing was also critical, with funds needed quickly.

We arranged an Alternative Overdraft, secured as a second charge against the client’s main residence. This provided a flexible source of funding, with the drawdown process tailored to the pace of the client’s investment plans.

The EPC issue was resolved quickly, and the full facility was set up within three weeks of the initial enquiry. The structure allowed the client to draw funds for each purpose, purchasing and displaying artwork, and progressing nightclub renovations, while having the option to repay and redraw as the projects evolved.

This case is a clear example of how a revolving-style product like our Alternative Overdraft can give business owners and property professionals the breathing space they need to manage multiple projects without the burden of repeated applications or upfront interest on undrawn capital. Discover more of our Alternative Overdraft case studies here.

How we support brokers and their clients

At Alternative Bridging Corporation, we’ve worked with brokers for over 30 years. We know how important it is to offer funding that fits around the client, not the other way round. Our Alternative Overdraft is a revolving-style facility designed to give clients the control and speed they need, without multiple applications or lengthy delays.

If you’ve got a client who needs a more flexible approach to short-term funding, we’d be happy to help. Register with us here today.