Overview on Revolving Limit
Plan for future needs and have the approval to finance ready to go.
A Revolving Limit and Bulk Limit is a credit limit to allow funds to be drawn for the financing of goods under finance products offered by the lender, without the need for approval at the time of each draw-down. This is particularly important for a business with a high turnover of machinery, or for pre planning a project that will require equipment finance.
- The limit is established by way of a full review of the business needs and current commitments.
- Once established, it is reviewed on a regular basis, usually annually to make sure there has been no changes to the needs or financial operations of the business.
- The Revolving Limit will allow the business to re-draw funds by way of further equipment finance up to the approved limit, provided the limit is still current and there has been no changes that would be reasonably expected to be disclosed.
- A bulk Limit allows the business to draw down the total funds once-only, and cannot be redrawn as repayments are made.
The limits are not tax deductible, however the drawn loans may hold tax benefits. You need to discuss this with your accountant.
Why CPI Finance
Revolving and bulk limits are established by way of reviewing your current and future business needs. CPI Finance has over 20 years in the business sector of Banking and Finance to understand your requirements and establish a lender that also understands your business.
“Limits are an important finance solution for an active equipment finance borrower, however they are heavily credit reviewed. This is an easy process as long as you have all your financials, taxes and employee entitlements up to date. CPI Finance is well experienced in revolving limits and the credit assessment around these, and can help make your life easy with a pre-approved limit for your business”.