Revolving fund

A revolving fund is an available loan balance that is replenished as a borrower pays back a lender. The amount can then be drawn down again by the borrower. The lender usually imposes a requirement that the entire loan be paid down at least once a year. The most common type of revolving fund is the line of credit.

A revolving fund is intended to pay for short-term needs, such as variations in the work capital requirements of a company that is subject to seasonal sales.