---
title: What is a revolving credit facility?
description: A Revolving Credit Facility (RCF) is a flexible line of credit that allows businesses to borrow, repay, and borrow again within an agreed limit and time period — much like how a credit card works. It’s especially useful for managing…
url: "https://yazodo.com/help/business-loan/what-is-a-revolving-credit-facility/"
updated: "2025-12-03"
category: Business Loan
tags:
  - Application Process
  - Business Loan
  - "Loan Amounts & Interest Rates"
  - Types of Business Loans
---

# What is a revolving credit facility?

A Revolving Credit Facility (RCF) is a flexible line of credit that allows businesses to borrow, repay, and borrow again within an agreed limit and time period — much like how a credit card works. It’s especially useful for managing cash flow or covering short-term expenses, as the business only pays interest on the amount used, not the entire credit limit.