This rate reduction comes from one specialist lender on our panel that focuses on smaller, more accessible facility sizes, with funding available from £20,000 upwards.
While it’s true that some lenders on our panel with much higher minimum loan volumes can offer lower headline rates, those products aren’t always practical or appropriate for smaller businesses. They often require larger commitments, more complex structures, or funding levels that simply aren’t needed.
For businesses that want flexibility without over-borrowing, or for businesses that are ineligible for larger funding, this is genuinely good news. A drop from 2.5% to 1.99% per month makes an already popular revolving credit facility even more affordable, while keeping the simplicity and speed that smaller businesses value most. You also only pay for what you draw down, which is a huge bonus.
In short: for businesses needing flexible funding, this is very welcomed news.
A quick note on larger funding structures
While this announcement is firmly about revolving credit facilities, it’s worth highlighting that larger businesses with higher stock levels or B2B trading models can unlock even greater efficiencies through trade finance or full life-cycle financing.
In these structures:
- Suppliers are paid upfront on your behalf
- Customer invoices are funded immediately as they’re raised
- Cash flows into the business without waiting on payment terms
For the right businesses, this can be one of the fastest and most cash-efficient ways to fund growth. It’s a slightly different tool, but a powerful one when the timing and scale are right.
The headline takeaway
- A 20.4% reduction in monthly RCF rates
- Designed specifically for smaller UK SMEs
- Lower cost, same flexibility, same speed
- No pressure to take on oversized facilities
For businesses already using this facility, the savings are immediate.
For those considering flexible working capital, the entry point just became significantly more attractive.
Positive pricing moves like this don’t happen often, and when they do, they’re worth acting on.
What is a Revolving Credit Facility (RCF)?
A revolving credit facility is a flexible form of working capital finance that behaves more like an overdraft than a traditional term loan, but without the rigid bank processes.
Once approved for a limit, a business can draw funds when needed, repay them, and then reuse the available headroom again.
Key difference: you only pay interest when you actually use the facility.
How this RCF works in practice
Businesses can:
- Pay suppliers or HMRC directly from the platform (GBP & FX), or
- Draw funds into their main bank account
There’s no paperwork for each draw, it works much like using an overdraft.
Each draw acts like its own loan.
Every drawdown is treated as a separate loan, meaning:
- Businesses often have multiple live balances at once
- Each balance has its own interest payable so you pay the least amount of interest possible for each draw
- Cash flow remains predictable and transparent
This structure is particularly effective for businesses managing rolling costs such as tax, stock, logistics, or supplier payments.
Revolving by design: repay and reuse
As repayments are made, headroom is immediately released, allowing businesses to:
- Repay early
- Re-draw when needed
- Avoid reapplying for finance
This makes the facility ideal for ongoing working capital rather than one-off borrowing.
The facility is unsecured, keeping structures simple and fast.
Where this facility fits best
This type of RCF works particularly well alongside:
- Invoice finance
- Card-based revenue models
- FX-heavy supplier chains
- Seasonal working capital cycles
It’s simpler than trade finance, offers competitive FX rates, and integrates cleanly into existing funding stacks rather than replacing them.
Who this facility is designed for
Lenders focus on profitable, well-managed businesses using capital to grow, not survival funding.
Typical profile:
- 2+ years trading
- £250k+ annual turnover
- Predictable cash flows
- Healthy margins
- Manageable existing debt
- Solid payment history (including Time to Pay arrangements)
Common supported sectors:
- Business services
- Wholesale and retail
- Manufacturing and distribution
- Transport and logistics
- Professional services
- E-commerce
