In Mark Smillie’s latest newsletter, he’s taking a look at Revolving Credit Facilites, and how they could be suitable for your business!


Good Morning Business Community,

If any of you are not dog lovers, please skip this and scroll down.

Mrs. S in particular, and I have been looking forward to hearing that our friends dog was going to give birth to a Border Terrier that had been reserved for us.

Unfortunately it was bad news and this is not going to happen.

If anyone has a puppy or young dog (small breed of dog) that needs a fantastic home with all the love that could be given to a dog, then you might think of Clare my wife.

We have had dogs for 30 years and she grew up with them, we lost Merlot (Cocker Spaniel) our last dog  2 years ago and we had 15 marvelous years together.

Cost and where the dog is not an issue (England and Wales), but I am looking for more an accident than anything or a dog from a one off litter. We are not looking for a dog for Christmas but a dog for life.


A Revolving Credit Facility or Overdraft for your business.

Who knows what is going to happen in the next 6 months, but this type of facility should give you some real flexibility for the unexpected opportunity or the sudden need for a cash facility.


What is a Revolving Credit Facility?

There are several types on offer, hence it would be good idea if I could point you in the right direction. There is nothing worse than buying something to find out, it could have been so much better, if only you had only known.

A Revolving Credit Facility is a pre approved amount of money that your business can borrow. It is ideally designed for short term use 30 to 90 days, but this does not have to be the case.

It could be used for things like late paying clients- Funding new work- HMRC or paying wages- A business opportunity.

Honestly, it can be used for anything, but my gut feeling is there could be a record number of bad debts next year, which is one of the biggest killers of a sound business.

The non obvious reason for bad debt, is HMRC getting their preference back. For more info on this, you should really should read this short article.

How much can the business borrow?

An amount of money that the finance company has agreed is available for your business, usually between £20k and £3m.


Is this only for businesses with a great Credit Rating?

The short answer is No, if you know where to go and how to put the deal forward this type of finance is available to most businesses.

One of our clients was having a real issue getting any finance, because of poor accounts and could not get enough finance to fund future work. Creating a downward spiral.

We arranged a £180k Revolving Credit Facility in 48 hours secured on his business property.

Depending on the business, a facility can be arranged without a personal guarantee.


How much does it cost?

Well it depends on the circumstances of the business, but normally it works out much cheaper than taking a short term business loan.

There are usually no set up fees or they are nominal.

You only pay when you use the facility and there are no annual charges.


How can I find out more?

Just pick up the phone and ask me 07710 466166


Kind regards, 

Mark Smillie

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