Revolving Credit for Professional Services
Professional services firms experience irregular cash flows — large invoices followed by quiet periods, bonus months, partner drawings, and tax payment dates all create peaks and troughs. A revolving credit facility provides a flexible buffer to manage these variations without the cost of carrying a permanent loan.
For partnerships and LLPs, an RCF can also smooth the disconnect between when profits are earned and when partner tax payments are due.
Key Benefits
- Smooth irregular cash flows from project-based revenue
- Cover partner drawings during quieter billing periods
- Manage tax payment timing without depleting reserves
- Cost-effective — only pay for what you use
Frequently Asked Questions
Is it suitable for seasonal billing patterns?
Absolutely. If your billings are concentrated in certain months (common for consultancies with year-end projects), an RCF provides cash during quieter months and is repaid when invoices are collected.
Can it fund partner tax liabilities?
Yes. Partners can draw to cover personal tax bills (Self Assessment) and repay when the next profit distribution is made. This avoids the need for each partner to maintain large personal cash reserves.
What financial covenants are typical?
Lenders may require minimum revenue, debt service cover ratio (DSCR), or maximum leverage ratio covenants. These are tested quarterly or annually. Strong financials make covenant terms more relaxed.
How quickly can I draw funds?
Once the facility is established, drawdowns are typically available within 1-2 working days — often same-day for online-managed facilities. This speed makes it practical for day-to-day cash management.
Related Funding Options
Invoice Finance for Professional Services Firms
Release cash from consultancy, IT, and professional service invoices. Confidential invoice discounting for UK service businesses.
Unsecured Business Loans for Professional Services
Growth funding for UK consultancies, IT firms, accountancy practices, and law firms. No property security required.
VAT Loans for Professional Services
Spread quarterly VAT payments for UK consultancies, law firms, and professional service businesses.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.