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Definition
On a revolving credit facility or business overdraft, interest is charged only on the balance you have actually drawn, typically accruing daily. You may also pay a non-utilisation fee on the headroom you leave undrawn. Repay and redraw freely — the interest follows the balance.
In plain terms
It is pay-as-you-go borrowing: use £5,000 of a £50,000 line and you pay interest on £5,000, not £50,000.
Why it matters for your company
A revolving facility rewards drawing tight and repaying fast. See how to minimise interest on a revolving facility and non-utilisation fee.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.