A senior revolving credit facility is a flexible, first-charge loan that allows property developers to draw, repay, and re-draw funds within a pre-agreed limit and time frame. It is particularly suited to multi-phase or repeat-unit schemes, enabling efficient cash flow management across stages. In UK property development finance, this structure offers developers greater liquidity control, as repaid capital becomes available again during the loan term. Interest is charged on drawn amounts, and the facility may be structured to fund land, infrastructure, or vertical build, depending on the lender and project profile.
Within the Senior Debt 1st Charge layer, a senior revolving credit facility introduces a dynamic funding mechanism that aligns closely with phased development delivery and recycling of capital. Lenders will typically impose structured controls around utilisation, drawdown conditions, and repayment cycles, often requiring ongoing verification through instruments such as a Covenant Compliance Certificate. From a monitoring perspective, the facility’s effectiveness is closely linked to disciplined cash flow management, with metrics like Working Capital & Runway providing insight into liquidity resilience and the developer’s ability to sustain progress across multiple build stages without refinancing pressure.
View glossary entry