A Revolving Credit Facility (RCF) is a flexible funding solution that functions similarly to an overdraft. It provides a pool of funds that businesses can draw from as needed, repay, and then borrow again. This allows for ongoing access to capital without the need to reapply for a loan each time funds are needed.

Revolving Credit Facilities are, therefore, good for businesses that experience fluctuations in their cash flow, such as those in seasonal industries. 

It’s a great option to protect against unexpected costs. If businesses rely on machinery, equipment, or vehicles that they can’t do without, it’s a helpful backup and means the owner doesn’t have to go through the finance application process every time there’s an emergency.