Reparo Finance has confirmed the launch of a new revolving credit facility to support SMEs with cashflow to fund growth.

The specialist commercial finance provider said the move “plugs a gap in the market” for flexible access to funds between £25,000 and £75,000 over the course of a financial year.

Reparo, founded in 2014, provides commercial finance to UK SMEs and works with brokers to offer both secured and unsecured finance to help small businesses meet their funding needs.

The firm suggested that in comparison to repayments on a fixed term loan, a revolving credit facility is often a cheaper alternative for businesses, by drawing down funds as needed and paying funds back incrementally, before the 12-month term ends.

Reparo commercial director, Steve Richardson, said that SMEs with a sub-£1m turnover are often “overlooked” in the market, and suggested there is a need for “something different”.

“From conversations with business owners and brokers, we found that £50,000 was often the ‘magic number’ for working capital for many businesses,” Richardson said.

“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.”

Richardson added: “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.”

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