By Eugene Maslov, Founder and Finance Broker at Lendr360
Published 9 September 2026 · Last reviewed 24 September 2026
A revolving business overdraft or line of credit may provide breathing room when expenses fall due before customer payments arrive. Depending on the facility, interest may be charged only on the amount drawn rather than the entire approved limit.
This type of finance may be useful for short-term timing gaps involving stock, supplier bills, seasonal trading or delayed customer payments. It should support an otherwise sound business—not conceal an ongoing trading loss.
Limits, interest rates, fees, security requirements and review periods vary between lenders. The business and its owners will still be assessed, and approval is never automatic.
Before using working-capital finance, consider what is creating the cash-flow gap, how long the funds will be needed and what incoming payment will repay the facility.