Like an overdraft, but without needing a bank account. Flexible loans allowing access to money when needed.
A flexible line of credit allows you to access money – up to £100,000 - as and when you need it. So, it’s great for businesses that need money quickly, to re-stock or expand into new premises for example. Essentially, it’s a flexible loan, meaning that you can re-pay and re-draw money like a traditional bank overdraft (although there’s no bank account required).
Credit line that can be made available to use as and when it’s needed.
* Facilities are provided for up to 12 months, but can be renewed at the end of the period.
Interest is typically charged daily on outstanding balances. Costs vary depending on your credit rating, volume of lending, and other factors; interest is paid on the amount of capital drawn
A Flexible Line of Credit it best suited for businesses that can demonstrate a good credit history and strong financials; you pay interest on money drawn.
To apply for a Flexible Credit Line you will typically need to have been trading for 12 months and your company turnover must be equal to or more than £40,000 per year.
Some lenders require businesses / directors to demonstrate a good credit history and equity / net assets in the business. It’s less suitable for businesses with a limited track-record, that are loss-making or have recently restructured.
A personal guarantee – an agreement that means a director takes on a certain level of personal responsibility for the debt through their own finances/assets - is typically required. Sometimes, invoices or property can be substituted in place of a personal guarantee.
Produced in association with our partners at KPMG Small Business Accounting.
Turned down by its bank, this London Brewery turned to Funding Xchange to help it find finance to fund a new product line.
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