Unlock Financial Flexibility with a Revolving Credit Facility!
Growing your portfolio with a revolving credit facility.
Imagine an overdraft on steroids, a rolling credit facility – that’s what a revolving credit facility or RCF offers! Unlike traditional bridging loans, this dynamic funding tool allows you to access funds you need, when you need them, providing unparalleled flexibility. This is especially advantageous for those uncertain about their precise financing needs or planning phased purchases or investments.
With a rolling credit facility, you can draw funds, repay them, and repeat the process seamlessly. It’s a financial solution that adapts to your evolving needs, making it superior to the rigid structure of a buy-to-let mortgage and a great alternative to a bridging loan or a business loan.
The real magic is that with a rolling credit facility or business credit line you only ever pay interest on the funds you use. Unlike traditional loans where you pay interest on the entire amount, a revolving credit facility lets you save significantly by paying interest solely on the utilised funds.
Ready to elevate your property or trading business? We will arrange a bespoke revolving credit facility for you, ensuring you have the financial agility to thrive in any scenario.
Experience the freedom of funds tailored to your needs – inquire about a revolving credit facility today!
What can I use a Revolving Credit Facility for?
A revolving credit facility can be used in a variety of ways. You can be as creative as you want with a RCF and use it for a combination of funding requirements. Here are our top 10 uses;
Property Acquisitions
- RCFs can be used to fund property acquisitions quickly and efficiently. They will provide you with an instant deposit or even provide the full funding for a “cash” purchase.
Development Projects
- Property developers can utilise RCFs to fund development projects. Not only construction but also renovation and refurbishments, ensuring seamless cash flow management throughout the project lifecycle. Your RCF can reduce the number of drawdowns needed from your main lender or eliminate the need for them altogether.
Working Capital Needs:
- RCFs provide property owners with access to working capital to cover day-to-day operational expenses. You can cover maintenance, repairs, and property management costs.
Bridging loan alternative:
- When traditional financing is unavailable or delayed, RCFs can replace a bridging loan. I.e your RCF can provide interim funds to bridge the gap until long term funding is secured.
Property Improvements & Upgrades:
- Property owners can use RCFs to fund property improvements and enhancements, such as landscaping, interior upgrades, and energy-efficient installations, enhancing property value and tenant satisfaction.
Cash Flow Management:
- RCFs offer flexibility in managing cash flow fluctuations, allowing property owners access to funds when needed and repay the balance as cash flow improves, reducing longer term interest expenses.
Auction purchases:
- RCFs are ideal for purchasing at auction. Indeed, your RCF will provide you with immediate access to funds to complete on your auction purchase.
Site Acquisitions:
- Developers can leverage RCFs to fund site acquisitions for future development projects, ensuring swift execution and making the most of opportunities.
Seasonal Expenses:
- Property revolving credit facilities can help property owners manage seasonal expenses, such as property tax payments, insurance premiums, and utility bills, ensuring smooth operations year-round.
Opportunistic Investments:
- RCFs empower property investors to act on opportunistic investments and market fluctuations, enabling them to act swiftly and take advantage of favorable market conditions.
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!!