Debt Financing Guides for UK Businesses

They are very similar. A business line of credit is commonly structured as a revolving credit facility: the business gets an agreed credit limit, can draw and repay funds repeatedly, and pays only on the amount drawn, not the full limit. The difference is mostly terminology and market context.

Requirements vary by lender. Most specialist lenders require the business to be a UK-registered limited company with at least six months of trading history and consistent monthly revenue.

Lenders also assess cash flow patterns — the regularity and predictability of inflows — and in most cases review the personal credit history of the directors.

With a specialist lender using Open Banking, decisions can be reached within 24 hours for straightforward applications. High street banks typically take weeks or months.

Once a facility is in place, drawing down funds is fast — no reapplication needed each time you draw.

A business line of credit is a flexible funding facility that gives your business access to a pre-approved credit limit. You draw what you need, repay it, and the funds become available to draw again.

You only pay a fee on the amount drawn, not the full limit. In the UK, the same product is typically called a revolving credit facility.

A lender approves a credit limit for your business. You draw funds when you need them, for working capital, stock, VAT, or payroll, then repay on agreed terms.

The facility revolves: once repaid, your limit refreshes. Fees apply only to the amount drawn, not the full approved limit.