A revolving capital facility allows a business to borrow money as needed for funding working capital needs and continuing operations. A revolving line is especially helpful during times of revenue fluctuations since bills and unexpected expenses can be paid by drawing from a fund. This can then be used by business owners for a range of purposes, particularly when they need a quick cash flow injection. It’s a form of business finance that works as a cash advance and helps to bridge that gap in your cash flow. With a revolving capital facility, you can cover costs immediately while waiting for an expected cash boost.
5 Ways that a revolving capital facility can help your business
- Fast access to finance to boost cash flow
- Provides a buffer in between receiving payments from customers
- Gives options of flexible repayment options
- Can prevent financial loss for seasonal businesses needing to purchase stock mid-season to make a profit
- Allows you to buy out a difficult partner
- Allows you to invest in stock, and equipment, train staff, or build inventory you might need or would like to scale with.
Common Uses of Revolving Capital Facility
- Helpful for quick access to cash for a down payment.
- Purchasing new equipment that is priced above the amount of cash on hand available to a business
- Covering essential operational costs (such as salaries) during temporary dips in cash flow
- If you’re a seasonal business, it can help sustain cash flow during low season
- staff development and training
- Stock and inventory
- Scaling a business
Apply for Bridging Finance with Lula
Lula has solutions that offer your business a cash flow boost when you need access to funds sooner rather than later. We offer Revolving Capital Solutions that are unsecured, and easily accessible, fast. We also offer the option to settle early without having to worry about penalty fees. Get in touch to find out how we can help you – Yes, with real humans who care.
