A revolving loan is a line of credit whereby the person lending the money pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for clients who have contracts with a predetermined lifespan and monetary value.
Revolving credit facilities are mainly used for operating purposes and the loan amount varies from month to month, depending on the client’s current cash flow needs.
It is money given in advance, and is primarily available to established businesses that are mainly existing sefa clients with satisfactory credit records.
The benefits of revolving loans:
Repayments are structured in relation to the business’s cash flow projections.
The repayment term:
At sefa, the revolving loan repayment term has been structured to be a maximum of 12 months, or dependent on the duration of the contract