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Definition
Revolving credit is a facility with a pre-agreed limit that you can draw from, repay and draw again, as often as you like within the term. You generally pay interest only on the balance actually outstanding, not the whole limit. It contrasts with a term loan, which advances a lump sum repaid on a fixed schedule and cannot be redrawn.
Revolving credit suits recurring, unpredictable funding needs — seasonal swings, lumpy customer payments — where flexibility matters. See term loan vs revolving facility and the revolving credit guide.
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