Reparo Finance has launched a revolving credit facility to support small and medium enterprises (SMEs) with cashflow to fund growth.
It was launched to plug a gap in the market for flexible access to loans under £75,000 over the course of a financial year.
Steve Richardson, commercial director at Reparo, said: “We know it’s not easy running a business in today’s climate.
“SMEs with a sub-£1m turnover are often overlooked in the market. There’s a real need there for something different.”
He added: “From conversations with business owners and brokers, we found that £50,000 was often the ‘magic number’ for working capital for many businesses.
“When using standard unsecured loans to meet this need, businesses risk becoming over-leveraged, taking out £100,000s in loans over the course of a year simply because they needed £50,000 of working capital on several occasions.
“Our new facility offers them something more suited to this scenario.”
Reparo’s revolving credit facility is a pre-agreed facility that offers businesses the flexibility to draw down funds as needed with up to 12-month terms.
Key features include a minimum first drawdown of £25,000, further drawdowns as needed – up to two per month – no non-utilisation fee, and interest-only payments.
Richardson concluded: “The new revolving credit facility offers SMEs the funds to fulfil large contracts, expand their team or open a new site – whatever they need to grow.
“Having the funds on tap to draw down as needed allows businesses to react quickly and grab growth opportunities with both hands.”
