Rolling Credit Facilities for Property Developers & Investors

Why Rolling Credit Facilities and Overdrafts Work So Well for Property Investors.

What is an Overdraft in the context of a Property Developer? According to SHEDyt's associateGolden Trust Capital, this is a revolving credit facility that provides investors access to funds beyond the balance in their account, up to a pre-agreed limit. Unlike a traditional loan, it doesn’t lock you into fixed repayments on a lump sum. Instead, you can draw down funds when you need them and repay them flexibly.

So, for property developers & investors, this is a powerful tool as this financial product ensures you, as an entrepreneur, can:

• Move quickly on time-sensitive opportunities such as auction purchases or off-market acquisitions.
  

• Cover unexpected costs like renovation overruns, tenant voids, or urgent maintenance.
  

• Smooth cash flow while waiting for rental income or refinancing to complete.
  

In short, overdrafts help property companies to stay agile in a market where timing is often everything.

Why rolling facilities and overdrafts beat traditional loans

The key advantage of an overdraft is flexibility. A term loan gives you a lump sum repayable over a set period, whether you need it all at once or not. With an overdraft, you only pay interest on the funds you use, for as long as you use them. This revolving nature makes overdrafts ideal for:

• Renovations & Developments – draw funds in stages as works progress.
  

• Auction purchases – access liquidity within 24 hours to complete on fast-moving deals.
  

• Portfolio management – cover temporary shortfalls without taking on unnecessary debt.
  

For investors managing both residential and commercial properties, this flexibility can mean the difference between securing a high-return project and missing out.

An example of a facility from Golden Trust Capital

SHEDyt’s associate Golden Trust Capital understands that property finance needs to be fast and adaptable, and their overdraft facility offers:

• Funding from £250k to £5m
  

• Terms from 3 to 24 months
  

• Up to 75% LTV
  

• Interest from 0.88% per month (on first-charge loans under £500,000)
  

• 24-hour drawdown capability
  

• Interest only on funds drawn – reducing unnecessary cost
  

• No repetitive loan set-up fees
  

This structure makes it perfect for site acquisitions, funding refurbishments, improving under-utilised assets, or bridging cash flow until a refinance or sale completes.

A case study in action

One client used our overdraft to refinance their buy-to-let portfolio while simultaneously funding new acquisitions. Instead of locking into multiple loans, they had a single line of flexible credit. As rental income and refinancing proceeds came in, they repaid the overdraft, then redrew funds as needed; This enabled them to:

• Cover day-to-day operational costs.
  

• Secure additional investment opportunities.
  

• Avoid retained interest charges and maximise their net advance.
  

The result? A streamlined funding approach that accelerated portfolio growth without the usual financing friction, such as organising and paying for building surveyors to sign off on stages before releasing funds.

Why property investors love overdrafts

Property is an unpredictable business; Projects overrun, tenants move out, and markets shift. Having liquidity “on tap” gives investors confidence to move fast and keep momentum. Overdrafts reduce financing costs, save time, and provide the flexibility traditional loans can’t match.

That’s why so many property investors consider a rolling credit facility not just a financial tool – but a competitive advantage.

Want to know more about how Rolling Credit Facilities can help you as a Property Developer or Investor? If so, book a meeting on > meet.shedyt.com

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