Can I have a revolving credit facility and invoice finance at the same time?

Yes. They solve different problems, and running both is common once a business is past a certain size.

What each one covers

Invoice finance releases cash from invoices you have already raised, typically 80% to 90% of the value within 24 hours. Its great strength is that the funding line grows automatically as your sales ledger grows. Its limitation is that it only funds work you have already done and billed.

A revolving credit facility covers everything that happens before you invoice. Buying stock, paying wages on a long project, settling a VAT bill, funding a deposit to a supplier. It is a fixed limit you draw against as needed.

Most growing businesses hit both problems. A recruitment agency funds its payroll through invoice finance but needs an RCF for a quarterly tax bill. A wholesaler funds its ledger through invoice finance but needs an RCF to buy stock three months before it sells.

The thing to sort out first

Most invoice finance agreements take security over your debtor book, usually registered as a charge at Companies House. A revolving credit facility lender will want to know what security already exists and where they sit in the queue.

This is the practical obstacle, not an insurmountable one. It means:

• Tell each lender about the other. Discovering an existing charge at the credit stage is the fastest way to lose an offer.
• Order matters. It is usually easier to add an RCF on top of existing invoice finance than to retrofit invoice finance under an existing facility with a broad debenture.
• Some lenders are more relaxed than others. Appetite for sitting behind another charge varies considerably across the market.

Whether it is worth it

Two facilities means two sets of fees, so it is worth checking that a single larger facility would not do the job. Sometimes it would. If your funding need is genuinely tied to unpaid invoices, a bigger invoice finance line may be simpler and cheaper than adding an RCF.

Where the need is genuinely split between billed work and pre-invoice costs, layering the two is the right structure.

This is exactly the sort of thing worth talking through before you apply anywhere. We will look at what you already have in place, what the security position is, and whether two facilities or one bigger one serves you better.