Spare cash poses a good problem: pay down the facility, or keep it for working capital? There’s no universal answer, but a simple framing makes the call clear for your situation.
Weigh it up
- Overpay if: the interest saved beats what the cash would earn or enable elsewhere, and you’d still have enough headroom for the unexpected.
- Keep the buffer if: cash flow is lumpy, a known cost is coming, or the security of a reserve is worth more than the interest saved.
The Flex advantage
On a revolving Flex facility you don’t have to choose starkly: overpay to save interest now, knowing you can redraw the headroom if you need the cash back later. That flexibility is the point. With no early-settlement penalty, overpaying is never “locked away” — but only redraw for a genuine need, and keep borrowing proportionate to turnover.
Your facility is priced with simple interest and the figures fixed up front on your Key Information Sheet, so nothing here changes what you owe by surprise — it only changes how you view, manage or evidence it.
See also: How to pay ahead in good months, How to work out what you’d save by settling early, How to view your facility limit and headroom.