What is a Business Line of Credit?
A business line of credit is a flexible revolving credit facility that allows a business to draw funds up to a pre-agreed limit, repay, and draw again — similar to a credit card but with higher limits and lower rates. Interest is charged only on the amount drawn, not the full facility. As a whole-of-market broker, Seven Hills Capital Group identifies which UK lenders offer genuine revolving credit facilities rather than fixed-term loans marketed as lines of credit.
How Business Line of Credit works in practice
A revolving credit facility that lets you draw down, repay and draw again. Pay interest only on what you use. Ideal for businesses with variable cash flow needs.
How it works
A lender approves a credit limit — typically £10,000 to £500,000
You draw funds as needed, up to the limit
Interest is charged only on the amount drawn and the period it is outstanding
As you repay, the available balance is restored — revolving access to funds
Who It Is Right For
- A line of credit suits businesses that need flexible, ongoing access to funds rather than a single lump sum.
- It works well for businesses with variable cash flow, seasonal trading patterns, or unpredictable expenses.
- It is also used as a safety net — available when needed but not drawn unless required.
Pros
- Interest only on what you use — not the full revolving credit facility
- Draw, repay and draw again without reapplying each time
- Flexible — access any amount up to your limit at any time
- Acts as a cash flow safety net even if rarely used
Things To Consider
- Approval requires a solid credit profile in most cases
- Facility fees may apply even when the credit line is not drawn
- Revolving access to credit can encourage over-reliance if not managed carefully
- Credit limits may be lower for newer or early-stage businesses
Why Use Seven Hills Capital Group
Not all lenders offer true revolving lines of credit — many products marketed as flexible business credit facilities are actually fixed-term loans with drawdown features. Seven Hills Capital Group knows the difference and knows which UK lenders offer genuine revolving credit at competitive rates. We will match you to the right structure for your specific cash flow needs, whether that is a revolving facility, working capital loans, or a merchant cash advance.
How Seven Hills Capital Group Could Help Your Business
Every business situation is different. The illustrative examples on our case studies page are based on common scenarios we see from UK business owners and landlords - showing how the right finance product, found through a whole-of-market broker, can make a real difference.
View All Case StudiesFrequently Asked Questions
How is a business line of credit different from a business loan?
A business loan provides a fixed lump sum repaid over a set term. A revolving line of credit lets you draw, repay and draw again up to your approved limit. A term loan is better for a specific defined investment; a line of credit is better for ongoing flexible access to working capital.
What credit limit can I get on a business line of credit?
Business credit facility limits typically range from £10,000 to £500,000 for UK SMEs, based on turnover, credit profile and trading history. Some specialist lenders go higher for larger businesses. We will identify the most realistic limit for your profile before any application.
Do I pay interest on my full credit limit?
No. Interest on a revolving business credit facility is charged only on the amount you have drawn and only for the period it is outstanding. If you draw £20,000 from a £100,000 facility, you pay interest on £20,000 only — the remaining £80,000 sits available at no cost.
How quickly can I access a business line of credit?
Once a credit facility is approved, funds can typically be drawn within 24 hours. The initial approval process varies by lender — some alternative lenders can approve a business line of credit within days. We will identify the fastest appropriate lender for your profile.
Can I use a business line of credit for any purpose?
Most UK lenders allow revolving credit facilities to be used for any legitimate business purpose — cash flow, stock, payroll, unexpected costs. Some lenders restrict use to working capital and exclude asset purchase. We will confirm the permitted uses before recommending a specific facility.
Not sure if Business Line of Credit is right for your business?
Our team will tell you honestly in one conversation whether this is the right product for your situation — and if not, what is.