2 min read
How they differ
A loan gives a lump sum with a fixed repayment plan — good for a defined, larger cost. A business credit card is convenient for small, frequent purchases and short-term float, but carrying a balance can be expensive.
Which wins when
Use a card for day-to-day expenses you clear in full each month. Use a loan or facility for anything larger or held longer, where the lower cost of borrowing matters. Read business loan vs credit card.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is a business credit card cheaper than a loan?
Only if you clear the balance each month. Carrying a balance on a card is usually dearer than a loan, so cards suit short-lived spend and loans suit larger, planned costs.
Can I use both?
Yes. Many businesses use a card for convenience on small purchases and a loan or facility for larger needs. The key is not to carry an expensive card balance.
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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.