Can I increase my credit facility limit?

2 min read

YesLimit increases can be requested

ReassessedBased on current trading

AffordabilityHeadroom must stay sustainable

What supports an increase

Growth is the usual trigger: higher turnover, a stronger bank balance, and a track record of using and repaying the existing facility well. A clean repayment history on what you already have is one of the best arguments for more. The creditworthiness guide covers what helps.

How the new limit is judged

A higher limit means higher potential repayments, so affordability is re-tested. The question is whether current trading can comfortably service the larger facility if drawn — the same affordability test as a first application, on up-to-date numbers.

Facility versus a second loan

Raising an existing limit is often cleaner than opening a separate facility — fewer commitments to manage. But if the need is a one-off purchase rather than ongoing headroom, a term loan might fit better. See can I have more than one business loan at once.

Frequently asked questions

How soon after opening can I ask for more?

There is no fixed wait, but a period of using and repaying the facility well gives the strongest evidence. A request backed by a few months of clean activity is easier to assess.

Could my limit be reduced instead?

A facility is reviewed over time, and if a company's position weakens, headroom can be adjusted. Keeping trading steady and repayments on time supports keeping or growing the limit.