Credit facilities (UK)

Repeatable funding lines (often revolving) used by scaling businesses to manage timing gaps and fund growth without raising equity.

Most founders use facilities once the business is scaling and cashflow is predictable.

Facilities can be powerful because they are reusable. They can also become risky if covenants tighten when performance dips.

See UK providers

Credit facilities are designed for flexibility. Instead of a single loan drawdown, you receive an approved limit and can draw down funding as needed. Revolving facilities allow you to repay and redraw, which can make them a strong fit for scaling businesses managing cashflow timing and growth.

At a glance

Best for	Scaling businesses that want a repeatable funding line (often revolving) rather than a one-off loan
Most common use	Flexible drawdowns, smoothing cashflow, funding growth, bridging timing gaps
Typical ticket size	Often larger than early-stage loans (depends on revenue profile and lender)
Speed	Can be efficient once you have a banking relationship and stable metrics
Collateral / guarantees	Varies. May include security, covenants, and reporting obligations
Trade-off	High flexibility, but facilities can come with tighter monitoring and covenant risk

When credit facilities are not the best fit

You are pre-revenue

If you are early-stage and pre-revenue, public or regional startup loans are usually more relevant.

You are waiting on invoices

If your problem is delayed payments, invoice finance and contract-backed working capital may be more targeted.

You are seed-backed and extending runway

If the goal is runway between rounds, venture debt may be the better category.

Credit facility providers

A starting list. As you expand this, capture facility type, covenants, and how limits are set.

ScalingFacilitiesFlexible drawdown

Provider	Region	Typical ticket	Stage	Needs revenue	Notes
Innovation banking teams (revolving facilities)	UK	Varies (often larger once traction is clear)	Scaling / growth	Often	Facilities can be revolving (draw down and repay). Underwriting often depends on revenue stability and risk profile.
Growth credit and structured lenders	UK / Europe	£1m to £50m+ (structure dependent)	Growth	Often	Can include covenants and reporting. Sometimes overlaps with venture debt depending on equity backing.
Specialist lenders (recurring line facilities)	UK	Varies	Scaling	Often	Often designed for repeatable working capital or growth facilities, sometimes tied to specific performance metrics.

FAQs

What is a credit facility?

A credit facility is a type of repayable funding that gives you access to a funding limit, often with flexible drawdowns. Revolving facilities allow you to borrow, repay, and borrow again within the agreed limit.

How is a credit facility different from a loan?

A standard loan is usually a one-off drawdown with fixed repayments. A credit facility is often a reusable line that can be drawn down in stages, which can make it more flexible for scaling businesses.

Are credit facilities only for large companies?

Not necessarily. Some innovation banks and specialist lenders provide facilities to scaling startups, especially once revenue and cashflow stability improve.

What are the risks of credit facilities?

Facilities can include covenants and reporting obligations. If performance drops or covenants are breached, access can tighten quickly. Facilities work best when cashflow is predictable and risk is manageable.

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