APR or factor rate — what's the difference?
APR expresses the annualised cost of credit including fees, while a factor rate is a flat multiplier applied once to the amount bo…
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Are Loan Arrangement Fees Tax Deductible Against Corporation Tax?
Arrangement fees paid to secure a business loan are treated as part of the cost of borrowing and are generally deductible against …
Read →Are there fees on business loans?
It depends on the lender and the product — some business loans carry fees, and some don't. Common ones include an arrangement or f…
Read →Asset finance or a term loan?
Asset finance ties borrowing directly to a specific piece of equipment or vehicle and often preserves the asset as security, where…
Read →Borrowing to Grow vs Using Company Cash Reserves: How to Decide
Deploying cash reserves avoids interest costs but can leave the business dangerously illiquid, whereas borrowing preserves working…
Read →Bridging Loan vs Commercial Mortgage for Property Acquisition
A bridging loan completes a property purchase at speed with a defined short-term exit, while a commercial mortgage offers lower lo…
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Bridging the Gap Between Contract Win and First Payment for a UK Business
The gap between a contract award and the first customer payment is often the most dangerous cash flow period a growing UK limited …
Read →Business Interruption Insurance: What Limited Companies Should Know
Business interruption insurance compensates a limited company for lost profit and continuing fixed costs during the period it cann…
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Business Loan End of Term: Renew, Refinance, or Close — How UK Companies Decide
At end of term, a company should compare the cost and flexibility of renewing with its existing lender against external market alt…
Read →Business Loan Payment Holidays: How They Work for UK Limited Companies
A payment holiday suspends capital repayments for an agreed period, but interest typically continues to accrue and is either capit…
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Business Overdraft vs Revolving Credit Facility: Key Differences for Directors
A business overdraft is repayable on demand and typically unsecured, whereas a revolving credit facility is a committed, structure…
Read →Business loan or overdraft — which is better?
A business loan gives your company a fixed lump sum with a defined repayment schedule, while an overdraft provides a flexible buff…
Read →Buying Out a Co-Director from a UK Limited Company
Buying out a departing co-director requires agreeing a share valuation, legal transfer mechanism, and funding structure — each of …
Read →Can I borrow if my business account is overdrawn?
An overdrawn business account is not an automatic disqualifier, but it signals cash-flow pressure that lenders will examine closel…
Read →Can I borrow more than my monthly turnover?
Yes — it is common to borrow more than one month's turnover. Working-capital facilities are frequently sized at more than a single…
Read →Can I borrow with a CCJ against my company?
A county court judgment against a limited company is a significant adverse entry, but satisfied CCJs, older judgments, and isolate…
Read →Can I borrow without putting up security?
Unsecured business borrowing is possible for limited companies with solid trading records, but lenders compensate for the absence …
Read →Can I change my business loan repayment amount?
Sometimes you can change your repayment amount mid-term — usually by restructuring the agreement, topping up the facility, or agre…
Read →Can I change my business loan repayment date?
In most cases, yes — you can change your business loan repayment date by asking your lender, ideally well before the next payment …
Read →Can I consolidate my business debts into one loan?
Yes. Consolidating several business debts into a single loan can simplify your repayments and, depending on the terms, ease your m…
Read →Can I get a business loan as the only director of my company?
Yes. Being the only director of your limited company does not stop you borrowing. Lenders assess the company's trading and ability…
Read →Can I get a business loan if I already have other loans?
Usually yes — having existing borrowing does not rule out a further business loan, provided the company can comfortably afford the…
Read →Can I get a business loan if I still have a Bounce Back Loan?
Yes, in most cases. An outstanding Bounce Back Loan (BBL) is simply existing debt a lender takes into account — what matters is wh…
Read →Can I get a business loan with a CCJ?
Possibly. A County Court Judgment against your company makes borrowing harder, but it is not an automatic no. A lender weighs the …
Read →Can I get a business loan with bad credit?
A poor credit history does not automatically disqualify a limited company from business borrowing, but it does affect the terms an…
Read →Can I get a business loan with bad credit?
Often, yes — a business loan with imperfect credit is achievable, because many working-capital lenders look at the company's tradi…
Read →Can I get a business loan with no trading history?
For working-capital finance, usually not yet — a company with no trading history has nothing for a lender to assess. This type of …
Read →Can I get a business loan without collateral?
Yes. You can get a business loan without pledging collateral — this is called unsecured lending, and it is common for short-term w…
Read →Can I get a business loan without filed accounts?
Often, yes. For short-term finance, recent business bank statements can stand in for filed annual accounts. A young company may no…
Read →Can I get business finance if my company already has debt?
Yes — existing debt does not automatically rule out new business finance. Lenders care less about whether your company owes money …
Read →Can I get finance for a seasonal business?
Yes — seasonal businesses can absolutely get finance. Lenders are used to uneven trading, and several products are well suited to …
Read →Can I get finance without filed accounts?
Filed accounts are one source of evidence, not the only one — lenders can assess management accounts, bank statements, and contrac…
Read →Can I have more than one business loan at once?
Yes, a company can hold more than one facility at a time — but every new borrowing is assessed on whether the business can afford …
Read →Can I increase my credit facility limit?
Yes. You can ask to raise the limit on a facility, and the request is reassessed against your company's current trading and afford…
Read →Can I pay off a business loan early, and is there a penalty?
Yes, you can usually settle a business loan early — and whether it saves you money depends on how the cost is structured. Where in…
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Can I refinance an existing business loan?
Yes. Refinancing a business loan — replacing it with new borrowing on better terms — is common and often sensible as a company gro…
Read →Can I repay a business loan early?
Yes — you can usually repay a business loan early, and on most short-term facilities doing so reduces the total interest you pay, …
Read →Can I restructure a business loan?
A business loan restructure typically involves negotiating with the existing lender to modify the repayment schedule, extend the t…
Read →Can I take a repayment holiday on a business loan?
A repayment holiday is an agreed pause in your instalments for a set period — and yes, it is sometimes available, but it is not fr…
Read →Can I top up an existing business loan?
Yes — in most cases you can top up an existing business loan, either by adding further lending alongside the current facility or b…
Read →Can I use a business loan for marketing or advertising?
Yes, you can use a business loan to fund marketing or advertising — and it can be one of the more profitable uses, provided the sp…
Read →Can I use a business loan to buy a van or vehicle?
Yes, you can use a working-capital loan to buy a van or vehicle — but dedicated vehicle finance, such as hire purchase or asset fi…
Read →Can I use a business loan to buy equipment?
Yes, you can use a working-capital loan to buy equipment — but it is not always the best-fitting product. For smaller tools or kit…
Read →Can I use a business loan to buy stock?
Yes. Funding stock is one of the most common and natural uses of short-term business finance. Stock ties up cash before it generat…
Read →Can I use a business loan to cover payroll?
Yes, you can use short-term finance to cover a payroll run — and bridging a genuine timing gap is a legitimate, responsible use. W…
Read →Can I use a business loan to open a second location?
Yes. Funding a second location is a well-established use of business finance, covering both the fit-out and the working capital a …
Read →Can I use a business loan to pay a tax bill?
Yes. Spreading a tax bill with short-term finance is one of the most common, legitimate reasons UK companies borrow. VAT, Corporat…
Read →Can I use a business loan to pay corporation tax?
Yes. A short-term business loan is a common way to cover a lump-sum corporation tax bill when the cash is tied up elsewhere — the …
Read →Can I use a business loan to pay suppliers?
Yes. Using short-term finance to pay suppliers is a common, sound use of working capital. Whether you need to meet agreed terms on…
Read →Can You Claim Capital Allowances on Equipment Bought with a Business Loan?
Buying equipment with loan finance does not affect your entitlement to capital allowances — you can still claim the Annual Investm…
Read →Can a CIC or social enterprise get a business loan?
Yes — a community interest company or other incorporated social enterprise can be considered for business finance, provided it is …
Read →Can a Company Borrow When One Customer Represents Most of Its Revenue?
A company that derives the majority of its revenue from one customer can still access commercial finance, but lenders will stress-…
Read →Can a Holding Company Borrow Against Its Subsidiary Revenues?
A UK holding company can borrow commercially, but lenders will look at the consolidated group trading position and the legal relat…
Read →Can a Limited Company Borrow After a Loss-Making Year?
A single loss-making year is not an automatic bar to commercial borrowing, provided the company can demonstrate that the loss was …
Read →Can a Limited Company Borrow While a County Court Claim Is Active?
An active County Court claim against your company — or even a registered CCJ — does not automatically disqualify you from commerci…
Read →Can a Limited Company in a CVA Borrow Additional Commercial Finance?
Borrowing while subject to a Company Voluntary Arrangement (CVA) is possible in limited circumstances, but the CVA supervisor's co…
Read →Can a Newly Incorporated SPV or Shell Company Borrow Commercially?
A newly incorporated special purpose vehicle or shell company has no trading history of its own, so lenders will underwrite the tr…
Read →Can a Pre-Profit Limited Company Access Commercial Lending?
A limited company that has not yet reached profitability can access commercial finance, but the evidential bar is higher and the f…
Read →Can a Previously Dormant Company Borrow Commercially After Reactivation?
A limited company that has been dormant and is now reactivating can seek commercial finance, but lenders will treat it similarly t…
Read →Can a Seasonal Business Borrow Against Uneven Revenue?
Businesses with heavily seasonal revenue — hospitality, retail, tourism, agriculture — can access commercial finance, but lenders …
Read →Can a brand-new company get a business loan?
A newly incorporated limited company can access business finance, but the absence of trading history shifts lender focus toward th…
Read →Can a business loan cover a seasonal cash flow gap?
Yes — a seasonal gap is exactly what short-term finance is built for. The key is to borrow against a known, dated recovery: you co…
Read →Can a company guarantee another company's debt? Directors' legal position
A company may guarantee the debt of a related entity, but the guaranteeing company's directors must be satisfied there is genuine …
Read →Can a company lend money to its own director? UK company law rules
A UK company can lend money to its director, but amounts above prescribed thresholds require shareholder approval under the Compan…
Read →Can a dormant company get a business loan?
No — a dormant company cannot get working-capital finance. Dormant means the company has had no significant accounting transaction…
Read →Can a franchise get a business loan?
Yes — if you run a franchise through a UK limited company, that company can be assessed for working-capital finance on its own tra…
Read →Can a limited company borrow without a personal guarantee?
Yes — a limited company can borrow without a personal guarantee. Credicorp lends to the company itself and does not require the di…
Read →Can a limited company get a business loan?
Yes. A UK limited company is the natural borrower for a business loan — and for Credicorp, the only one. Because a limited company…
Read →Can a new business get a business loan?
Yes, a new business can get a business loan — but it is harder, and the type of lender matters. Most short-term working-capital le…
Read →Can a pre-revenue startup get funding?
Pre-revenue startups face the most constrained commercial lending environment; debt finance in this phase typically requires stron…
Read →Can a sole trader get a Credicorp loan?
No. Credicorp lends only to UK limited companies, not to sole traders. Because Credicorp lends to the business as a separate legal…
Read →Can a sole trader get business finance?
Sole traders can borrow for business purposes, though the range of commercial lenders is narrower than for limited companies, and …
Read →Can an LLP get a business loan?
Yes. A limited liability partnership (LLP) can borrow, because — unlike an ordinary partnership — it's a separate legal entity tha…
Read →Can my business get a loan with irregular cash flow?
Yes. Irregular cash flow does not rule out finance — plenty of companies bill in lumps or have uneven months. What matters is that…
Read →Can my business have more than one loan at the same time?
A limited company can hold multiple loan facilities simultaneously provided the total debt remains serviceable — lenders will asse…
Read →Can my company borrow against future sales?
Yes — a UK company can borrow against its future sales. Several finance types are built around expected revenue: revenue-based fin…
Read →Can two companies I own both borrow from Credicorp?
Yes, two companies you own can each be considered for finance — but because they are connected, the borrowing is assessed across t…
Read →Can two directors apply for a business loan together?
Yes — two directors can apply for a business loan together. With a limited company, the loan is made to the company itself, so it …
Read →Cash Basis vs Accruals Accounting: Which Should a Limited Company Use?
UK limited companies are required to prepare accounts on the accruals basis — cash basis accounting is not available to incorporat…
Read →Changing Your Business Loan Payment Date: A Guide for UK Limited Companies
Most commercial lenders will accommodate a one-off payment date change, but the request must be made in writing and may incur a br…
Read →Charging orders on company property: how unsecured debts become secured
A charging order allows a judgment creditor to register a court-imposed security interest over company property, effectively conve…
Read →Covenant Breach on a Business Loan: What a UK Company Should Do
A covenant breach triggers a default event under the facility agreement, but most agreements provide a cure period and lenders wil…
Read →Cyber Insurance for UK Limited Companies: Is It Necessary?
Cyber insurance reimburses a limited company for the direct financial costs and third-party liabilities arising from a data breach…
Read →Daily or monthly interest — does it matter?
The frequency at which interest accrues determines how quickly the balance grows between payments — daily accrual tends to cost ma…
Read →Dealing with a Late-Paying Business Customer
A structured escalation process — from polite reminder to formal letter before action — recovers the majority of overdue B2B debts…
Read →Debenture vs Insurance: Understanding the Difference as a Business Borrower
A debenture is a security instrument giving a lender a legal charge over company assets, whereas insurance is a separate contract …
Read →Debt Collection Options for UK Limited Companies
The right debt collection route depends on the size of the debt, the debtor's financial position, and whether you need to preserve…
Read →Director loan accounts: what they are and the tax rules that apply
A director loan account (DLA) records every non-salary, non-dividend transaction between a company and its director, and an overdr…
Read →Directors' and Officers' Liability Insurance: Is It Worth It for Your Limited Company?
Directors' and officers' liability insurance protects the personal assets of company directors and senior officers against claims …
Read →Directors' duties when a company takes on debt: what the law requires
When a company borrows, directors must exercise independent judgment, act in good faith for the company's benefit, and manage any …
Read →Do I Need Business Insurance to Get a Commercial Loan?
Lenders routinely require evidence of relevant insurance cover before completing a commercial loan, because adequate protection re…
Read →Do I need a business plan to get a business loan?
For short-term working-capital finance, you usually do not need a formal written business plan. Lenders that assess a trading limi…
Read →Do I need a deposit for a business loan?
For short-term working-capital finance, you usually do not put down a deposit at all. A deposit is money you contribute up front a…
Read →Do I need collateral for a business loan?
No, not always. Plenty of business lending is unsecured, meaning no specific asset is pledged as collateral. Whether security is r…
Read →Do I need to be VAT registered for a business loan?
No, VAT registration is not a requirement for a business loan. Plenty of UK limited companies trade below the VAT threshold and st…
Read →Do I need to be VAT registered to get a business loan?
No. VAT registration is not a condition of business borrowing. Whether your company is VAT-registered depends on its turnover and …
Read →Do I need to connect my bank account to apply?
You do not strictly have to connect your account — but doing so through Open Banking is the quickest, smoothest way to apply. Conn…
Read →Do business loans affect my personal credit score?
Usually no — a loan to your limited company does not appear on your personal credit file, provided there is no personal guarantee.…
Read →Do business loans show on my company credit file?
Yes. Business borrowing is typically reported to commercial credit reference agencies and appears on your company credit file — di…
Read →Does Credicorp lend across the whole UK?
Yes. Credicorp lends to UK limited companies wherever they are based in the United Kingdom — England, Scotland, Wales and Northern…
Read →Does Credicorp lend to individuals or sole traders?
No. Credicorp lends only to UK limited companies, not to individuals or sole traders. The borrower is always the company itself — …
Read →Does Credicorp report to credit reference agencies?
Credicorp lends to limited companies, so any credit-reference activity relates to the company’s credit profile, not your personal …
Read →Does a business loan show on my personal credit file?
A loan to your limited company normally shows on the company's credit record, not your personal file — provided there is no person…
Read →Does applying for a business loan affect my credit score?
A formal application typically leaves a hard search footprint on company and, where a personal guarantee is involved, director cre…
Read →Does my business need to be profitable to get a loan?
Not necessarily. For short-term finance, the cash moving through your business often matters more than the profit on your accounts…
Read →Does my industry affect getting a business loan?
Your industry plays a part in how a business loan is assessed, but for most trades it is a factor, not a barrier. Lenders know tha…
Read →Does my turnover affect how much I can borrow?
Yes — turnover is one of the biggest drivers of how much your company can borrow. Working-capital facilities are sized against the…
Read →Does the director's personal credit matter?
For most UK limited company lending, the personal credit history of the directors is reviewed alongside the company file — particu…
Read →Due Diligence Basics When Buying a UK Business
Due diligence is the structured process of verifying the seller's representations about a business before contracts are exchanged,…
Read →Earn-Outs Explained: Deferred Consideration in UK Business Sales
An earn-out links part of the sale proceeds to the business's post-completion performance, bridging the gap between buyer and sell…
Read →Employers' Liability Insurance: Legal Obligations for UK Limited Companies
Employers' liability insurance is legally compulsory for virtually every UK limited company that employs staff, covering compensat…
Read →Financing a Franchise Purchase or Franchise Expansion as a UK Limited Company
Franchise businesses carry a proven model but still require bespoke commercial financing matched to the franchise fee structure, t…
Read →Fixed charge receivership: what it means for directors and the company
When a lender appoints a fixed charge receiver over secured assets, the receiver's duty is to the appointing lender, not to the co…
Read →Funding Growth Through a Management Buyout or Partner Buyout
A management buyout or partner buyout can unlock a growth phase by aligning ownership with the directors who will execute the stra…
Read →Funding a Hiring Spree to Scale a UK Limited Company
Hiring ahead of demand is often necessary to win and deliver larger contracts, but the payroll commitment is fixed while the reven…
Read →Funding a Second Business Location as a UK Limited Company
A second location carries both capital and working capital demands that should be modelled separately and financed with matched in…
Read →Heads of Terms: What to Include When Selling or Buying a UK Business
Heads of terms set the commercial framework for a business sale before the full legal documentation is drafted, and getting key te…
Read →High Street Bank vs Alternative Lender: Which Is Right for Your Business?
High street banks offer the lowest headline rates and broadest product range for well-seasoned companies, while alternative lender…
Read →Hire Purchase vs Finance Lease for Business Assets: A Director's Guide
Hire purchase transfers legal ownership to your company at the end of the agreement, while a finance lease retains title with the …
Read →How Care Homes and Residential Care Providers Manage Cashflow
Residential care providers face a dual cashflow challenge: local authority fee income arrives in arrears while staffing — the domi…
Read →How Construction Firms Fund Materials and Subcontractors
Construction firms routinely carry significant working capital gaps between site start and final payment, making access to short-t…
Read →How Do Director Changes Affect a Commercial Loan Application or Existing Facility?
Director changes — whether before an application or during an existing facility — are material events that lenders take seriously,…
Read →How Does Taking a Business Loan Affect Your Company's Corporation Tax Bill?
A business loan reduces your corporation tax bill in two ways: deductible interest and fees lower taxable profits, and if funds pu…
Read →How Food and Drink Manufacturers Fund Production Runs and Ingredient Purchases
Food and drink manufacturers face a compressed margin and extended debtor cycle when supplying major retailers, requiring discipli…
Read →How IT and Managed Service Providers Fund Hardware Procurement for Clients
IT and managed service providers regularly purchase hardware and software licences on a client's behalf, creating a short but sign…
Read →How Independent Retailers Fund Seasonal Stock Purchases
Independent retail businesses must buy stock before they sell it, often committing to large orders months ahead of peak seasons wh…
Read →How Long Must a UK Limited Company Keep Its Financial Records?
The retention period for company financial records depends on the type of document — accounting records must be kept for at least …
Read →How Manufacturers Fund Machinery and Capital Equipment Purchases
Manufacturing businesses routinely face six- and seven-figure equipment decisions where the right asset finance structure can dete…
Read →How Marketing and Creative Agencies Fund Payroll Before Client Payment
Marketing, PR and creative agencies face a structural payroll-to-payment mismatch that makes working capital facilities one of the…
Read →How Professional Services Firms Fund Large Project Disbursements
Professional services firms — from solicitors to engineering consultants — regularly advance third-party costs on behalf of client…
Read →How Recruitment Agencies Fund Contractor and Temporary Worker Payroll
Recruitment businesses carrying large contractor headcounts face a weekly cash outflow for payroll that routinely runs weeks ahead…
Read →How Road Haulage Companies Fund Vehicle and Fleet Acquisition
Road haulage businesses are asset-heavy by nature, and the cost of a single HGV or specialist trailer makes outright purchase impr…
Read →How do I apply for a business loan?
To apply for a business loan with Credicorp you complete a short online application: enter your company details, tell the lender h…
Read →How do I improve my company’s chance of loan approval?
You improve your company’s chance of loan approval by showing a lender that the business can comfortably afford the repayments. In…
Read →How do I know if I can afford a business loan?
You can afford a business loan when the repayment fits comfortably inside your surplus cash flow — the money left each month after…
Read →How do I work out the total repayable?
Total repayable is the sum of every payment you will make over the life of the facility — principal, interest, and all mandatory f…
Read →How do repayments work on a business loan?
Most business loans are repaid in regular instalments that cover both interest and a slice of the principal, so the balance falls …
Read →How does Credicorp protect my data?
Credicorp handles your data under UK data-protection law, over encrypted connections, with access limited to those who need it. Wh…
Read →How does no-personal-guarantee lending actually work?
No-personal-guarantee lending works by making the loan to the limited company itself — a separate legal person — rather than to th…
Read →How fast can I get a business loan?
Speed depends on loan complexity and how quickly your business supplies supporting information, but many unsecured facilities can …
Read →How fast can I get a business loan?
With a short-term business lender, funds can typically reach your account within 24 to 48 hours of approval, and sometimes the sam…
Read →How is business loan interest calculated?
Business loan interest is calculated by applying an interest rate to what you owe over the time you owe it. Two methods dominate t…
Read →How is my business borrowing limit decided?
Your borrowing limit is set by what your company can comfortably afford to repay, judged from its cash flow, trading history and t…
Read →How long can I borrow money for?
Short-term business finance typically runs from a few months up to around 12 to 24 months, with most working-capital facilities si…
Read →How long does a business need to trade before it can borrow?
There is no single legal minimum, but many short-term working-capital lenders want to see at least a few months of trading before …
Read →How long does a lending decision take?
A lending decision can arrive in hours for simple unsecured facilities or take several weeks where a credit committee, property se…
Read →How long does business loan approval take?
Business loan approval can take anywhere from a few hours to several weeks, depending on the lender and how complete your applicat…
Read →How long does my company need to have been trading to borrow?
There is no single fixed rule, but a trading track record helps. Lenders want enough history to see how the company earns and repa…
Read →How many times can I apply for a business loan?
There is no hard limit on how many times you can apply for a business loan — but how you space them matters far more than the coun…
Read →How much can my business borrow based on cash flow?
It depends on affordability, not a fixed multiple. A lender sizes a short-term facility around the surplus cash your company gener…
Read →How much can my business borrow?
Borrowing capacity is set by your company's revenue, profitability and existing debt obligations, not by an arbitrary ceiling — le…
Read →How much can my business borrow?
How much your business can borrow depends mainly on your turnover, trading history and what the repayments can comfortably afford …
Read →How much does a business loan cost?
The total cost of a business loan depends on the interest rate or factor rate, the loan term, and any fees applied at origination …
Read →How much does a business loan cost?
The cost of a business loan is the interest you pay plus any fees, spread over the term you borrow for. The headline figure to foc…
Read →How quickly can funds reach my account?
Once your application is approved and the agreement is signed, funds can often reach your business bank account the same day, and …
Read →How to Assess Your Company's Working Capital Needs Before Borrowing
Understanding your working capital cycle before approaching a lender helps you borrow the right amount for the right term — overbo…
Read →How to Build Business Credit for Your UK Limited Company
A strong business credit profile takes deliberate action to build, but it directly determines whether lenders, suppliers, and land…
Read →How to Choose an Accountant for Your UK Limited Company
The right accountant does far more than file annual returns — they become a strategic adviser who can flag tax efficiencies, suppo…
Read →How to File a Confirmation Statement at Companies House
The confirmation statement is an annual Companies House filing that confirms or updates your company's registered information — mi…
Read →How to Finance Export Orders as a UK Limited Company
Winning export orders is a growth milestone, but the longer payment cycles and currency complexity require dedicated trade finance…
Read →How to Fund Rapid Business Growth Without Losing Control
When orders accelerate faster than collections, a limited company needs structured growth financing rather than improvised overdra…
Read →How to Fund a Business Acquisition as a UK Limited Company
Acquiring another business typically requires a blend of funding sources, and understanding how lenders assess acquisition finance…
Read →How to Open a Business Bank Account for a UK Limited Company
Opening a dedicated business bank account is a legal and practical necessity for every UK limited company, and choosing the right …
Read →How to Prepare Management Accounts for a Commercial Loan Application
Management accounts give lenders a current picture of your business that annual filed accounts — often twelve to eighteen months o…
Read →How to Read a Business Credit Report for Your UK Company
A business credit report contains more information than most directors realise — understanding each section and its weighting lets…
Read →How to Register for VAT as a UK Limited Company
VAT registration becomes mandatory once your taxable turnover exceeds the current threshold, but voluntary registration is often b…
Read →How to Separate Business and Personal Finances as a Company Director
Keeping business and personal money cleanly separated is not just good practice but a legal requirement for directors of UK limite…
Read →How to Set Up a Direct Debit for Your UK Business
Setting up Direct Debits correctly — whether collecting payments from customers or agreeing mandates with suppliers — requires und…
Read →How to Set and Manage Credit Limits for Business Customers
A credit limit is your maximum acceptable exposure to a single customer — setting it correctly protects your company without unnec…
Read →How to Value a Small UK Limited Company
Valuing a small limited company involves choosing an appropriate method — earnings multiple, net asset value, or discounted cash f…
Read →Invoice Factoring vs Invoice Discounting: Which Facility Fits Your Company?
Factoring outsources your sales ledger management and collections to the funder, while invoice discounting advances cash against i…
Read →Invoice Factoring vs Invoice Discounting: Which Suits Your Business?
Both products unlock cash tied up in unpaid invoices, but factoring outsources credit control while discounting keeps it in-house …
Read →Invoice finance or a loan?
Invoice finance releases cash tied up in unpaid trade receivables without adding conventional debt to your balance sheet, while a …
Read →Is Business Loan Interest Tax Deductible for a UK Limited Company?
Interest on a business loan is usually deductible against your company's taxable profits, reducing your corporation tax bill — but…
Read →Is Credicorp a direct lender or a broker?
Credicorp is a direct lender, not a broker. You deal with Credicorp throughout — we assess your company, make the lending decision…
Read →Is Open Banking safe when applying for finance?
Yes — Open Banking is built to be safe, and it is regulated rather than a private arrangement. You authorise access through your o…
Read →Is VAT Charged on a Business Loan in the UK?
The interest charged on a business loan is VAT-exempt under UK VAT law, so your lender will not add VAT to interest payments — but…
Read →Is a business loan better than a bank overdraft?
Neither is simply better — it depends on whether you need certainty or flexibility. A term loan gives a fixed amount, a known cost…
Read →Is a business loan taxable income for a limited company?
No. Loan principal is not income — it is money you have to repay, recorded as a liability on the balance sheet, not as turnover. S…
Read →Is business loan interest tax deductible?
Yes — for a UK limited company, the interest on a business loan is normally an allowable expense against Corporation Tax, provided…
Read →Is business loan interest tax-deductible?
Interest paid on borrowing used wholly for business purposes is generally deductible against a UK limited company's taxable profit…
Read →Is invoice finance right for my business?
Invoice finance is likely right for your business if you sell to other businesses on credit terms and your cash is regularly tied …
Read →Is my business eligible for Credicorp finance?
You are likely eligible for Credicorp finance if you are a UK-registered limited company that is actively trading and has a genuin…
Read →Is the credit check soft or hard when I apply?
An early eligibility check is usually a soft search, which does not affect your credit score; a hard search normally happens only …
Read →Key-Person Insurance for Limited Companies: What It Does and When You Need It
Key-person insurance protects a limited company against the financial consequences of losing a director or essential employee to d…
Read →Leasing vs Buying Equipment Outright: The Business Case for Each
Buying equipment preserves full ownership and can deliver a substantial tax deduction in year one, while leasing conserves cash an…
Read →Loan Interest Deductibility in a Group or Holding Company Structure
Groups and holding companies face additional tax rules on interest deductibility — transfer pricing on intra-group loans and the C…
Read →Management Buyout Financing Options for UK SMEs
A management buyout lets an existing team acquire the business they run, and lenders assess MBOs primarily on the company's own ca…
Read →Mezzanine Finance vs Equity Investment: Funding Growth Without Losing Control
Mezzanine finance is subordinated debt that preserves director equity and control, whereas equity investment dilutes ownership but…
Read →Negotiating Better Payment Terms with Suppliers
Extending payment terms with key suppliers is one of the most capital-efficient ways to improve working capital without taking on …
Read →Personal Guarantees from Directors on Business Credit Accounts
A personal guarantee makes a director personally liable for a company debt — understanding the scope before signing is essential, …
Read →Preparing Your UK Business for Sale: A Practical Director's Checklist
The businesses that achieve the best outcomes in a sale process are those where directors start preparing 12 to 24 months before g…
Read →Product Liability Insurance: What UK Limited Companies That Manufacture or Supply Need to Know
Product liability insurance protects a limited company against claims that a product it manufactured, supplied, or imported caused…
Read →Professional Indemnity Insurance: Basics for UK Limited Companies
Professional indemnity insurance protects a limited company against claims that its advice, design, or professional services cause…
Read →Refinancing a Business Loan onto Better Terms: A Practical Guide for UK Companies
Refinancing replaces an existing facility with a new one, ideally at a lower cost or longer term — but the ERC on the existing loa…
Read →Repaying a Business Loan Early: What UK Limited Companies Need to Know
Most commercial lenders permit early repayment, but early repayment charges (ERCs) can offset the interest saved — your company sh…
Read →Retention of Title Clauses in UK Supplier Contracts
A properly drafted retention of title clause can allow you to reclaim goods from an insolvent customer's estate ahead of their uns…
Read →Running Credit Checks on Business Customers in the UK
A structured credit check before extending trade credit lets your company quantify the risk of each new customer account before an…
Read →Secured or unsecured — what's the difference?
A secured business loan is backed by a charge over company assets or property, while an unsecured loan relies on the company's fin…
Read →Secured or unsecured — which is right for my business?
A secured loan is backed by a company asset the lender can claim if you default, while an unsecured loan relies on your business's…
Read →Secured vs Unsecured Business Loan: What Growing Companies Need to Know
A secured loan pledges company assets as collateral in exchange for a lower cost of debt, while an unsecured loan is faster to arr…
Read →Selling Part of Your Business: Partial Sales and Minority Stakes Explained
A partial sale allows a UK limited company to raise capital or bring in a strategic partner without the original directors relinqu…
Read →Setting Customer Payment Terms for Your Limited Company
Clear, written payment terms agreed before work begins are the single most effective measure a limited company can take to protect…
Read →Settling a Business Loan in Full: Step-by-Step for UK Limited Companies
Full settlement requires a formal redemption figure, cleared funds transfer within the validity window, and written confirmation p…
Read →Share Sale vs Asset Sale: Which Structure Suits Your UK Business Deal?
Buyers typically prefer asset sales for liability protection, while sellers typically prefer share sales for simpler tax treatment…
Read →Short-term or long-term borrowing?
Matching loan tenor to the economic life of the funded asset or project is a core principle of sound business finance — short-term…
Read →Should I pick a fixed or variable rate?
A fixed rate gives certainty of payment; a variable rate can reduce cost if market rates fall but exposes the business to higher r…
Read →Tax Treatment of a Property Development Loan for a UK Limited Company
The tax treatment of a property development loan depends on whether your company is a property trader or property investor — the r…
Read →Tax Treatment of a Working Capital Loan for a UK Limited Company
Borrowing to fund working capital is not taxable income for your company, and the interest paid is deductible — but the underlying…
Read →Term Loan vs Revolving Credit Facility: Which Suits Your Company?
A term loan delivers a fixed lump sum repaid over a set schedule, while a revolving credit facility lets your company draw, repay,…
Read →Topping Up an Existing Business Loan: Options for UK Companies
When a company needs additional capital mid-term, the two main routes are a top-up on the existing facility or a separate second l…
Read →Trade Credit Insurance for UK B2B Businesses
Trade credit insurance pays out when a business customer fails to pay due to insolvency or protracted default, protecting your pro…
Read →Trade Credit Insurance: Protecting Your Business Against Bad Debt
Trade credit insurance reimburses a business for unpaid invoices caused by a customer's insolvency or protracted default, turning …
Read →Using Asset-Based Lending to Fund a Scale-Up as a UK Limited Company
Asset-based lending packages multiple asset classes into a single revolving facility, giving a scaling UK company larger and more …
Read →Using a Business Loan to Bridge R&D Tax Credit Cashflow
R&D-intensive companies often wait months for HMRC to pay a tax credit refund — a short-term bridging loan can resolve the cashflo…
Read →VAT on Asset Finance and Hire Purchase for UK Limited Companies
The VAT treatment of asset finance depends on the structure: hire purchase triggers VAT on the full asset value upfront, while ope…
Read →What Are Abbreviated Accounts and What Do They Actually Disclose?
Small and micro-entity companies may file reduced-disclosure accounts at Companies House, omitting the profit and loss account — m…
Read →What Are Management Accounts, and Why Do They Matter to Directors and Lenders?
Management accounts are periodic internal financial statements — typically monthly or quarterly — that give directors a real-time …
Read →What Do Commercial Lenders Look for in a Limited Company's Accounts?
When reviewing accounts, commercial lenders focus primarily on debt serviceability, balance sheet strength, and trading consistenc…
Read →What Happens If Your Company's Turnover Drops During a Loan Term?
A decline in turnover does not automatically trigger default, but informing your lender early and engaging on a restructure protec…
Read →What Happens at the End of a Business Loan Term?
At end of term, the company makes its final scheduled payment, the lender discharges any security, and the director should confirm…
Read →What Is Overtrading and How Do UK Limited Companies Avoid It?
Overtrading — expanding turnover faster than working capital — is one of the most common causes of insolvency for otherwise profit…
Read →What Is a Confirmation Statement and When Is It Due?
The confirmation statement is an annual Companies House filing that confirms or updates a company's key registered information — i…
Read →What Is a Director's Loan Account and How Does It Appear in Company Accounts?
A director's loan account (DLA) records all transactions between a director and the company that are neither salary nor dividends …
Read →What Is the Difference Between Statutory Accounts and Management Accounts?
Statutory accounts are formal annual documents filed at Companies House and HMRC, while management accounts are informal internal …
Read →What Records Must a UK Limited Company Keep?
UK limited companies are legally required to maintain statutory registers and financial accounting records under the Companies Act…
Read →What are the steps to apply for business finance?
Applying for business finance follows a predictable sequence of enquiry, credit assessment, formal offer and drawdown — understand…
Read →What can I use a business loan for?
You can use a business loan for almost any legitimate business purpose — buying stock, covering payroll, paying a VAT or supplier …
Read →What can a business loan be used for?
Business loans can be used for almost any legitimate commercial purpose, but lenders will decline applications where funds are int…
Read →What do lenders check on a business loan application?
Lenders mainly check the company's trading history, cash flow, bank statements, credit standing, and what the money is for. For sh…
Read →What documents do I need for a business loan?
For a short-term business loan you typically need recent business bank statements (usually the last three to six months), your com…
Read →What documents do I need to apply for a business loan?
Most lenders require filed accounts, recent bank statements and director identification as a minimum; larger or secured loans add …
Read →What fees should I expect on a business loan?
Business loans typically carry an arrangement fee and may include documentation, drawdown, or administration fees — knowing what t…
Read →What happens at the end of my loan term?
When a term loan reaches the end of its term, the final instalment clears the balance and the facility closes — there is normally …
Read →What happens if I miss a business loan repayment?
Missing a repayment moves the account into arrears, may trigger a fee, and can be recorded against the company's credit profile — …
Read →What happens if I miss a repayment?
Missing a scheduled repayment triggers a default notice process and may result in late fees, credit file damage, and in serious ca…
Read →What happens if I repay a business loan late?
If you repay a business loan late, you will typically incur late-payment interest or a fee, and the missed payment can be recorded…
Read →What happens to a business loan if the company closes?
If a limited company closes with a business loan still outstanding, the loan is a debt of the company and is dealt with through th…
Read →What if I can’t repay my business loan?
If you cannot repay a business loan, the most important thing is to contact your lender as early as possible — before a payment is…
Read →What information do I need to apply for a business loan?
To apply for working-capital finance you mainly need your company's details, evidence of recent trading, and a clear idea of how m…
Read →What is Credicorp Flex?
Credicorp Flex is a revolving business credit facility for UK limited companies. Instead of a single lump sum, your company is giv…
Read →What is a VAT loan?
A VAT loan covers your company's quarterly VAT liability on the due date so that working capital is not drained by the tax payment…
Read →What is a debenture? Security charges explained for company directors
A debenture is a formal security document that grants a lender a legal charge over some or all of a company's assets, giving the l…
Read →What is a floating charge? How it works and why lenders use it
A floating charge is a security interest that hovers over a shifting pool of assets — such as stock, trade debtors, or cash — leav…
Read →What is a good interest rate for a business loan?
There is no single "good" rate — a good interest rate is one that is fair for the type of finance, the term and your company's ris…
Read →What is a merchant cash advance?
A merchant cash advance (MCA) provides a lump sum of working capital repaid automatically as a fixed percentage of your card termi…
Read →What is a merchant cash advance?
A merchant cash advance (MCA) is a form of business finance where a provider gives your company a lump sum up front, and you repay…
Read →What is a personal guarantee and do I need one?
A personal guarantee (PG) is a legal promise by a company director to repay a business debt from their own money if the company ca…
Read →What is a personal guarantee? The legal position for UK directors
A personal guarantee is a legally binding contract under which a director agrees to repay a company's debt from personal assets if…
Read →What is a revolving credit facility?
A revolving credit facility (RCF) gives your limited company a pre-approved credit limit that can be drawn, repaid and redrawn rep…
Read →What is a working capital loan?
A working capital loan provides short- to medium-term funding to cover the day-to-day operating costs of a business — wages, stock…
Read →What is responsible business lending?
Responsible business lending means lending an amount a company can realistically afford to repay, on terms that are clear and fair…
Read →What is the difference between APR and a flat rate?
A flat rate is charged on the original amount you borrowed for the whole term; APR reflects the true annual cost on the balance th…
Read →What is the difference between a loan and a credit facility?
A loan is a single fixed sum advanced up front and repaid over a set schedule, while a credit facility is a pre-agreed borrowing l…
Read →What is the difference between an overdraft and a business loan?
A business overdraft is a flexible facility on your bank account that lets you spend beyond your balance up to an agreed limit, wh…
Read →What is the smallest business loan I can get?
There is no universal minimum — it depends on the lender and product — but short-term working-capital facilities commonly start in…
Read →What is working capital finance?
Working capital finance is short-term funding that covers a company's everyday running costs — stock, wages, suppliers, VAT — rath…
Read →What makes Credicorp different from a bank?
Credicorp is a specialist short-term business lender, not a bank. The headline differences are focus and structure: Credicorp does…
Read →What monthly repayment can my business afford?
A sustainable monthly repayment is one that takes a comfortable share of your free cash flow and still leaves a buffer for a quiet…
Read →What's the difference between a secured and unsecured business loan?
The difference is collateral. A secured loan is backed by a specific asset the lender can claim if you don't repay; an unsecured l…
Read →What's the largest business loan I can get?
The ceiling is set by what your company can comfortably afford to repay from its trading, not by a headline maximum. A lender work…
Read →When Must a UK Limited Company File Accounts at Companies House?
A UK limited company must file its annual accounts at Companies House within 9 months of its accounting reference date for private…
Read →When Should a UK Limited Company Take on Debt to Grow?
Debt is a rational growth tool when the return on the capital deployed materially exceeds the cost of borrowing — but that calcula…
Read →When does a business need a bridging loan?
A bridging loan provides short-term secured funding that 'bridges' a gap between an immediate cash need — typically a property pur…
Read →When is business loan money paid out?
Funds are released once all conditions in the credit agreement are met — for unsecured loans that is usually the day of signing, f…
Read →Will I pay a charge to repay early?
Many business loan agreements include an early repayment charge (ERC) that compensates the lender for lost interest if you repay b…
Read →Will a business loan affect my personal mortgage?
A business loan taken by your limited company, with no personal guarantee, generally has no direct effect on your personal mortgag…
Read →Will a past default stop me borrowing again?
A previous default on a business loan is a significant adverse entry but does not permanently prevent future borrowing — context, …
Read →Will applying for a business loan hurt my credit score?
Applying for a business loan does not usually hurt your credit score at the enquiry stage, because an initial eligibility check is…
Read →Will applying for a loan affect my business credit score?
A single, considered application leaves only a small footprint on your business credit profile — it is clustering many application…
Read →Wrongful trading: what it is and when directors face personal liability
Wrongful trading arises when a director continues to incur debts knowing there is no reasonable prospect of avoiding insolvent liq…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.