A Revolving Credit Limit is usually structured as a short-term facility where the Customer repays each drawing by a fixed period of time (1 month, 3 months or 6 months).
The Customer has the possibility to re-borrow sums as needed, up to the total amount of the limit. This form of facility is usually used for financing permanent working capital needs.
Key features and benefits:
Fixed interest rate for the duration of the each drawing.
Necessary cash flow to cover short-term needs.
Allows paying-down and draw the sums again as required.