How much does a revolving credit facility cost? A UK SME guide
Updated on 27 May 2026.
Part of our Revolving credit facility guide.
A clear walk-through of what a UK SME actually pays for a revolving credit facility, where the costs sit, and how to compare lenders properly.
The two things that determine what you pay
Revolving credit pricing has two dimensions most other loans don’t. Unlike a term loan where you can calculate your total repayment cost upfront, revolving credit cost is dynamic. Draw more, for longer, and you pay more. Draw less, repay quickly, and you pay less. This is one of the product’s key advantages, but it means the cost conversation requires more than just a rate comparison. We’ve written about that mismatch in how revolving credit protects your cash flow.
The main cost components
1. Interest on drawn balances
This is the primary cost. Interest is charged on the amount you have outstanding (your drawn balance), not on your total approved limit. Most revolving credit products express their cost as a monthly fee on the drawn balance, or as a daily rate. The full walk-through is in how is interest calculated on a revolving credit facility.
Example (illustrative, not Juice Flex’s published rate; pricing depends on your business circumstances). Facility limit £100,000. Amount drawn £40,000. Monthly interest rate 2.5%. Monthly interest cost £1,000.
If you repay the £40,000 after 2 months, your total interest cost would be approximately £2,000. The remaining £60,000 of your limit generated no interest cost at all during that period.
2. Facility fees (where applicable)
Some lenders charge a facility fee, either as a one-off arrangement fee, an annual renewal fee, or a combination. This is a fixed charge for maintaining the facility, separate from interest on drawn balances. Not all lenders charge this. When comparing products, factor any facility fees into your total cost calculation.
3. Drawdown fees (where applicable)
Some products charge a small fee each time you draw funds. Again, not universal.
4. Early repayment penalties (where applicable)
Some lenders charge a fee if you repay drawn balances ahead of schedule. With Juice Flex, there are no early repayment penalties. If you repay early, you simply stop accruing interest. No additional charge.
What affects the rate you’re offered?
Revolving credit rates are not fixed across all borrowers. The rate you’re offered is based on a risk assessment of your specific business. The primary factors:
- Trading history. Lenders want to see a track record. Most require a minimum of 12 months’ trading.
- Annual turnover. Higher turnover generally correlates with lower risk and better pricing.
- Credit history. Both your business credit profile and, for smaller businesses, your personal credit history will be reviewed.
- Facility size. Larger facilities can sometimes attract lower rates relative to smaller ones, though this varies by lender.
- Profitability and cash flow. A business with strong, consistent cash flow is a lower-risk borrower.
- Sector. Some sectors are perceived as higher risk than others.
How to calculate your actual cost
Rather than comparing rates in isolation, calculate the total cost based on how you expect to use the facility.
Example calculation (illustrative). Average drawn balance £35,000. Hold period 2 months. Monthly rate 2%. Total interest cost £35,000 × 2% × 2 = £1,400.
If there’s a facility fee or drawdown fee, add those to get a total annual cost. The question to ask is: what’s the cost of not having the facility? If the cost of the facility is lower than the cost of the problem it solves, the economics work.
Cost red flags to watch for
- Rate quoted on drawn balance vs total limit. Some lenders quote an attractive rate but charge it on your total credit limit rather than the amount drawn.
- Compounding interest. Simple daily or monthly interest is more transparent.
- Minimum monthly fees even if you haven’t drawn anything.
- Automatic renewal fees that can catch businesses off guard.
- Rate changes on review. Rates on revolving facilities can be revised at the lender’s periodic review.
A direct cost comparison against bank overdrafts is in overdraft vs revolving credit costs, and against merchant cash advances in which is cheaper, MCA or revolving.
What does Juice Flex cost?
Juice Flex pricing is based on your individual business circumstances. There is no single published rate because the right rate depends on your trading history, turnover, credit profile, and facility size.
To understand what Juice Flex would cost for your specific business, the fastest route is to check your eligibility online. You’ll get a personalised view based on your business’s actual circumstances. If you’re still weighing whether the product is right for you, our self-qualification checklist is a good starting point.
Ready to check your eligibility?
Juice Flex is available to UK limited companies and LLPs with monthly turnover of £20,000 or more. Facilities run from £50,000 to £1,000,000, subject to status and lending criteria. Checking your eligibility uses a soft credit search, so there’s no impact on your credit score.