Acorn Finance offers a revolving credit facility as part of its property finance services. This flexible financial solution allows borrowers to access a pre-approved credit limit that can be drawn upon as needed.
What is a Revolving Credit Facility?
A revolving credit facility is essentially an overdraft facility on steroids!
By using a revolving credit facility, borrowers have access to funds on an as-needed basis, rather than being required to take out a lump sum at the beginning of the loan period. This can be particularly beneficial for borrowers who are unsure of their precise financing needs or who may need to make purchases or investments in stages.
Unlike refinancing your property with a buy to let mortgage you’re able to draw on your facility, pay it back and repeat that as often as you need to.
The flexibility of a revolving credit facility also means that borrowers only pay interest on the funds they actually use. This can result in significant cost savings compared to traditional loan products, where borrowers are required to pay interest on the entire amount of the loan, regardless of whether they use all of the funds.
We can also arrange a revolving credit facility for your property or trading business.
Why Acorn.finance for your funding
We’ve been arranging funding since 1997 and, if you’ll forgive us for boasting but we think we’re quite good at it!
In fact – 7 x UK Best Broker Awards back us up in that assertion, so does our 5 star customer feedback.
So -for your property finance needs, or anything else funding – make sure you use a broker you can trust.
What can I use a Revolving Credit Facility for?
A revolving credit facility can be used in a variety of ways;
- Property developers may use it to finance ongoing construction costs.
- Landlords may use it to cover unexpected expenses or to take advantage of time-sensitive investment opportunities.
- Business owners can use a revolving credit facility as a source of working capital to help manage cash flow fluctuations.
Overall, a revolving credit facility is a versatile and cost-effective financing option for property developers, landlords, and businesses. By providing access to pre-approved credit limits, borrowers can manage their financing needs more effectively and respond quickly to changing market conditions.
Alternatives to a Revolving Credit Facility
This sort of finance product is perfect if you need to draw funds down, repay them and reuse the facility during the course of it’s term.
If that’s not your intention then it can be better to use cheaper options like a buy to let mortgage, a commercial buy to let or a more standard bridging loan.
Contact our experts to discuss your needs, let’s get you FUNDED!!
Bridging finance & short term funding
For short term property finance needs a bridge loan is the perfect solution. It allows the purchase or capital raise against a property with the exit then being onto a term mortgage or the sale of the property.
A bridging loan can be used for any one of a range of reasons, some examples being;
- Auction Purchase – Where speed is key.
- Refurbishment of a dilapidated property.
- Conversion of a property (often commercial to residential)
- New property development
- Capital raising for property, business or any (legal) purpose.
Buy to let mortgages
As an alternative to a line of credit, considering a remortgage or second charge loan on the portfolio whilst being less flexible, will be cheaper overall.
Check our our how to get a buy to let mortgage guide here.
Apply for a professional landlord mortgage here.
Commercial buy to let mortgages
For portfolio owners in commercial property a commercial buy to let mortgage could be the alternative to a revolving credit facility.
Commercial buy to let mortgages are available for virtually any property types including;
- Shops and semi-commercial properties.
- Hospitality businesses like Hotels, Pubs and Restaurants.
- Workshops and trade counters
- Industrial units and estates
- Farms and land
Find out more about commercial investment mortgages
Apply for a portfolio landlord mortgage here.
Contact us now on 0808 164 2364
Acorn.finance – 4th Floor, Silverstream House, London. W1T 6EB