Working Capital & Line of Credit
Working capital and line of credit facilities provide flexible access to capital for businesses, property projects and time-sensitive opportunities. These facilities are commonly used where funding is required quickly, or where capital needs may change over time.
Unlike a traditional loan, a working capital or line of credit facility allows funds to be accessed as required. This provides flexibility to fund deposits, manage cashflow or move on opportunities without needing a new loan each time.
At Vive Capital, we help structure working capital and line of credit facilities around how the funds will be used and repaid.
How working capital and line of credit facilites work
Working capital facilities are typically structured as revolving limits. Funds can be drawn, repaid and reused within an agreed amount, with interest usually charged only on the amount used.
Depending on the structure, facilities may be based on business performance, available equity or security. Some lenders focus on trading history and turnover, while others rely on property or asset backing.
These facilities are commonly used alongside other funding structures, particularly where flexible access to capital is important.
When working capital or line of credit is used
Working capital and line of credit facilities are often used where access to capital is required quickly or on an ongoing basis. This may include funding deposits, supporting cashflow or accessing capital for opportunities.
This may include:
• Funding deposits
• Supporting business cashflow
• Property opportunities
• Covering project costs
• Short-term capital requirements
• Managing timing between transactions
Each facility is structured around the intended use and repayment strategy.
What lenders typically look at
When assessing working capital or line of credit facilities, lenders usually consider trading performance, available equity and overall financial position.
They will also review the requested limit, how funds will be used and the proposed repayment approach. The focus is typically on access to capital and flexibility rather than a fixed loan structure.
When to consider working capital or line of credit
It’s best to consider working capital or line of credit facilities early, particularly where flexible access to funding may be required. This allows the facility to be in place before opportunities arise.
We can help when you're funding deposits, managing cashflow, supporting project costs or requiring flexible access to capital. Having a facility available often provides greater flexibility when timing is important.
Discuss your requirements
If you're looking for flexible access to capital, we can help structure a working capital or line of credit facility around your requirements. These facilities can be useful for funding deposits, managing cashflow or accessing capital quickly when opportunities arise.
We work with a range of lenders offering revolving lines, short-term facilities and flexible funding structures. The right option depends on how the funds will be used, available equity and the overall strength of the position.