Commercial Line of Credit
Flexible renewable credit facility for qualifying businesses.
A commercial line of credit provides your business with a pre-approved borrowing facility that you can draw upon as needed. Unlike a fixed-term loan where you receive a lump sum and repay over a set period, a line of credit gives you the flexibility to borrow, repay, and re-borrow within your approved limit \u2014 making it one of the most versatile working capital tools available.
Aberdeen Corporate Finance arranges commercial lines of credit from banks, challenger lenders, and specialist working capital providers, ensuring you secure a committed, competitive facility that meets your specific working capital requirements.
Key Features
Revolving Credit Facility
A commercial line of credit works like a revolving loan — you draw funds as needed, repay them, and draw again up to your approved limit. Unlike a term loan, you only pay interest on the funds you actually use, making it a cost-effective working capital solution.
Flexible Drawdowns
Draw funds when you need them for stock purchases, supplier payments, payroll, or other working capital requirements. There is no fixed drawdown schedule — you control when and how much you borrow within your approved limit.
Renewable Facility
Lines of credit are typically reviewed and renewed annually. As your business grows and your trading performance improves, the facility limit can be increased to reflect your expanded requirements. This provides a stable, long-term working capital solution.
Secured & Unsecured Options
Lines of credit can be secured against business assets (debtors, stock, property) or provided on an unsecured basis for businesses with strong balance sheets. Secured facilities typically offer higher limits and lower rates.
Predictable Costs
Interest is charged only on drawn funds, and many facilities include a small commitment fee on the undrawn balance. This provides cost predictability and ensures you are not paying for capital you are not using.
Overdraft Alternative
A committed line of credit provides greater certainty than a bank overdraft, which can be reduced or withdrawn at the bank's discretion. Once approved, the facility is committed for the agreed term and cannot be withdrawn provided you comply with the terms.
Key Benefits
Typical Parameters
Facility Sizes
Typical Renewal
Indicative Rate
Fastest Drawdown
Important Notice: Lines of credit are subject to annual review and renewal. All facilities are subject to status, credit approval, and lender criteria. Secured facilities require adequate security to be maintained. Aberdeen Corporate Finance Limited is not regulated by the FCA.
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