2 min read
Lump sum vs revolving
A loan hands you a fixed amount to repay over a term. A credit facility is revolving: you draw what you need up to a limit, repay, and reuse the headroom, paying only on what is drawn.
Which suits your need
For a defined one-off cost, a loan is simpler. For recurring or unpredictable needs — seasonal stock, bridging invoice gaps — a facility usually fits better because it flexes with you.
What it means for you
Match the structure to the shape of the need.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Do I pay interest on the whole facility limit?
No. On a credit facility the cost falls on the balance you have drawn, not the unused headroom. An untouched limit sits available without the running cost of a fully drawn loan.
Can I switch from a loan to a facility?
You can arrange a facility separately; the two are different products. Many companies keep a facility for flexibility alongside a loan for planned investment.
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