Revolving credit vs invoice finance

2 min read

Draw at willRevolving line

Ledger-linkedInvoice finance

Control vs scaleThe trade

Flexible line versus ledger funding

A revolving credit facility is a pot you dip into for any purpose, repaying and redrawing as you go — the flexibility is total and your customers never enter into it. Invoice finance is tied to your sales ledger: funding rises automatically as you invoice more, but it only helps where cash is locked in unpaid B2B invoices, and factoring involves your customers. So the choice is between a flexible, purpose-agnostic line and a facility that scales with sales but is narrower in use. See revolving credit and the invoice finance guide.

Which scales, which controls

	Revolving credit	Invoice finance
Purpose	Anything	Only invoice-locked cash
Scaling	Fixed limit (renegotiable)	Grows with sales
Customers	Never involved	May be (factoring)
Control	You keep it all	Ledger tied in

Invoice finance wins on automatic scaling for an invoice-heavy business; a revolving line wins on flexibility and keeping your ledger and customers entirely your own.

Choosing between them

If your cash is genuinely and persistently locked in a growing B2B ledger, invoice finance targets it and scales as you grow. If your needs are broader, occasional, or you value keeping customers out of it, a revolving line is simpler. Many directors prefer the line for its cleanliness — see invoice finance vs a loan.

The Credicorp view

A Credicorp Flex revolving line gives flexible, purpose-agnostic funding without tying in your ledger or involving customers — lent to the company with no personal guarantee. For a persistently invoice-locked, fast-growing ledger, weigh invoice finance too. Register to apply. Educational content, not financial advice.

Frequently asked questions

What is the difference between revolving credit and invoice finance?

A revolving credit facility is a flexible line you draw for any purpose and repay and redraw at will, never involving your customers. Invoice finance releases cash from your unpaid B2B invoices and scales with sales, but only helps where cash is invoice-locked and factoring involves your customers.

Which grows better with my business?

Invoice finance scales automatically as you invoice more, which suits an invoice-heavy, fast-growing business. A revolving line has a fixed limit until renegotiated, but it funds any purpose and keeps your ledger and customer relationships entirely your own.

Which keeps my customers out of it?

A revolving credit facility never involves your customers. Invoice finance may — factoring is usually disclosed because the lender collects payment, though confidential discounting keeps it private. If keeping customers out of your funding matters, a revolving line is the cleaner choice.