2 min read
Definition
The utilisation rate is the drawn balance divided by the facility limit. A revolving line sitting at 95% used behaves like a maxed-out overdraft.
In plain terms
Running a facility near its ceiling month after month tells a lender you have no headroom left — and can hurt your business credit profile.
Why it matters for your company
Keeping utilisation moderate preserves both liquidity and creditworthiness. If you are permanently near the limit, the facility is too small — review it. Compare the cost of raising it versus a term loan using the overdraft vs loan cost calculator.
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