Revolving Credit for Wholesale Businesses

A revolving credit facility for a wholesale business works like a credit line with a limit, not a loan with a fixed repayment schedule. You draw what you need, pay it back as stock turns, and the limit resets. Interest accrues only on the drawn balance, so a £500k facility that sits mostly undrawn costs you almost nothing in quiet periods.\n\nWhere this earns its place in a wholesaler's structure is alongside invoice finance. Invoice finance releases cash against your receivables, but it does not cover VAT, a supplier deposit on a bulk order, or a seasonal wage spike. The RCF fills that gap. Run both facilities in parallel and your borrowing tracks the whole trading cycle rather than just the debtor book.\n\nThe lenders who say yes to wholesale RCFs are mostly challenger banks and specialist trade-finance providers, not the high street. They understand that a distributor's balance sheet can look stretched during a stock-build phase without the business being in any trouble. Clean management accounts and a clear narrative around your purchasing cycle carry more weight than a spotless credit file. We are a broker, so we take that story to the lenders most likely to back it rather than leaving you to guess.