What is a revolving credit facility and how

2 min read

Draw & redrawHow it works

Pay on drawnInterest basis

Flexible needWhen it fits

How it works

A revolving credit facility gives you an approved limit you can dip into whenever you need, repay, and draw again — like a reusable line of credit. Interest applies only to the balance you've actually drawn, so an idle limit costs little. It contrasts with a term loan, where you take the whole sum once and repay on a fixed schedule.

When it fits

It suits recurring or lumpy needs — bridging the wait for customer payments, covering seasonal dips, funding a new hire's ramp-up — where a fixed loan would leave you paying interest on money sitting idle. Credicorp Flex is exactly this. Size the right limit with the working-capital calculator, and see facility vs a fixed loan.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Do I pay interest on the whole facility?

No — only on the amount you've actually drawn. An undrawn limit typically costs little or nothing (check for any non-utilisation fee). That's what makes a facility efficient for on-and-off needs.

How is a facility different from a loan?

A term loan gives you a lump sum once, repaid on a fixed schedule. A revolving facility lets you draw, repay and redraw up to a limit, paying interest only on the drawn balance. The facility suits recurring needs; the loan suits one-off costs.