Unlock Your Business Potential
Revolving Credit Facility
A Revolving Credit Facility (RCF) is a financing solution for the needs of non-bank funders and institutions within a predetermined credit limit, which is secured against assigned receivables. The Facility provides flexibility for the Borrower to access funds when they are needed for efficient cash flow management and to seize growth opportunities with ease.
Financial Flexibility: Understanding the Structure of Revolving Credit Facilities
Conister Bank secures the Facility by taking a debenture over the Borrower, a share charge over its assets for Special Purpose Vehicle (SPV), and completing security with the Revolving Credit Facility (RCF). A collection account is set up for managing customer receipts, with Conister Bank as a signatory.
The Revolving Credit Facility (RCF) requires maintaining a cash reserve of 3% to 10% of the principal balance outstanding to Conister Bank, based on the financial standing of the Borrower/SPV and other factors related to the product and company lifecycle.
Explore our products
FAQs
What criteria is used to determine funding for a Revolving Credit Facility?
Funding is based on the eligible borrowing base, subject to adjustments for historic dilution factors like arrears and defaults, and the Facility's security cover.
How is security managed for a Revolving Credit Facility?
Conister Bank secures the Facility by taking a debenture over the Borrower, a share charge over its assets for Special Purpose Vehicle (SPV), and completing security with the Revolving Credit Facility (RCF). A collection account is set up for managing customer receipts, with Conister Bank as a signatory.
What are the costs and expenses associated with Revolving Credit Facility?
The Borrowers are responsible for pre-lend audit fees and legal fees. An arrangement fee of 1% of the facility is payable upon signing, with other fees discussed during the onboarding process.
What is a Revolving Credit Facility?
A Revolving Credit Facility (RCF) is a financing solution that allows a Borrower or a Special Purpose Vehicle (SPV) to fund lending activities. It involves a single facility agreement with Conister Bank, utilising the borrower's own paperwork and systems for underlying agreements. In the case of an SPV structure, these agreements are transferred through a Sale Purchase Agreement (SPA). This setup facilitates continual access to funds, enabling borrowers to manage cash flow efficiently and maintain their operational systems.