£20m Revolving Credit Facility

Posted by Keystone Wealth Management Ltd on 1st November 2019 -

A business with £150m turnover which is traditionally a construction contractor now wants to purchase their own land to develop, requested a Revolving Credit Facility (RCF). However, as there were no assets to assign this to, apart from the balance sheet, I agreed with the lender a facility in which they assisted on a case by case basis, until they have enough assets to take security over. The misconception with an RCF is that it saves time and there are less restrictions when in fact this is not the case – it would still need the same due diligence on each site, and the process is largely the same. It also comes with a large drawback – a non-utilisation fee.

 

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