Revolving Term Loan

A revolving loan is a form of credit issued by banks that allows businesses of all sizes, including SMEs, to have additional cash for short-term financing and funding. Revolving loans give borrowers complete flexibility to re-borrow and repay the loan with no fixed repayment periods. After each repayment the credit limit is automatically restored without the need for re-application.

The one key differentiating feature between revolving loan and business instalment loan is how they operate. Instalment loan involves a lump sum repayable principal amount, which SMEs pay back with interest every month. Revolving loan, on the other hand, provides a pre-set line of credit to SMEs, allowing them to withdraw the cash they need immediately. After the amount has been repaid, the credit limit will be automatically restored, and you can re-borrow conveniently and flexibly at any time without having to apply again.

A short-term business loan is a loan with a repayment term of one year or less. Short-term loans provide solutions for the applicant to maintain production and operation cash flow. Revolving Term Loan is one of the short-term business loans. For example, DBS’ Revolving Term Loan allows SMEs to obtain short-term loan at any time for emergency needs. The loan repayment plan is flexible and can meet the repayment needs of customers, even for short-term loan. In addition, customers do not need to reapply and can easily borrow again.

DBS’ Revolving Term Loan provides plenty of benefits for SMEs in Hong Kong, including, 

• Readily available cash flow anytime, anywhere – This enables SME businesses to have a revolving term loan facility that provides cash on hand - allowing them to navigate through short-term fluctuations in their costs or sales.
•  No fixed repayment term – To lessen the financial pressures of SMEs in Hong Kong, DBS allows companies to repay their revolving term loan borrowed at their own pace.
•  Competitive interest rates – Many businesses worry about interests that come with loans. DBS offers competitive interest rates to ensure companies can easily fulfil repayments. 

To learn more about the credit limits associated with DBS’ Revolving Term Loan and other SME-related services that can help boost your business’ working capital, please contact your Relationship Manager or call DBS BusinessCare at 2290 8068. We will arrange for a product specialist to speak with you.

Your credit limit will be automatically restored upon every repayment made. Should you want to raise your credit limit, please contact your Relationship Manager or call DBS BusinessCare at 2290 8068.

Please refer to this link: Overdue / Default interest rate