Revolver
Private Equity glossary · Advanced LBO Modeling Mechanics & Deal Structuring
Definition
A revolving line of credit for working capital needs.
Revolver in plain English
A revolver is like a company's credit card: the bank approves a maximum limit, and the company can borrow, repay, and re-borrow over and over as needs come and go. Businesses use it for everyday timing gaps — say, paying suppliers now but not collecting from customers until next month. You only pay interest on what you've actually drawn, and once you repay, that room opens back up (hence "revolving"). It's meant for short-term working-capital needs, not for financing a big permanent purchase.
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