2 min read
Definition
A rollover loan is refinanced into a fresh term when it matures, rather than being cleared. Revolving working-capital facilities effectively roll over each period.
In plain terms
Rolling a genuine short-term swing is fine. Rolling the same balance year after year usually means it was really long-term debt in a short-term wrapper — and you keep paying renewal costs.
Why it matters for your company
If you are always rolling, term it out into a proper term loan at a known rate. Compare the true cost with the loan comparison calculator.
Related reading
Revolving facility
A revolving facility lets you draw, repay and redraw up to a limit, paying interest only on what you use —…
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Term loan
A term loan is a fixed lump sum borrowed upfront and repaid over a set period in regular instalments of…
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Refinancing
Refinancing is replacing one or more existing debts with a new facility — usually to lower the cost, extend…
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Maturity
Maturity is the date on which a loan or facility reaches the end of its agreed term and the outstanding…
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.