2 min read
What counts as material
Events that could affect your ability to repay: losing a major contract, a significant legal claim, a change of ownership, or a serious drop in trading. Many agreements include information covenants requiring you to report these — see covenant breach.
Why disclose early
A lender told early can often restructure or waive rather than enforce. Discovering a hidden change later erodes trust and can trigger acceleration. Transparency is almost always the lower-risk path.
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
Must I tell my lender if I lose a big customer?
Often yes, if the agreement has an information covenant or the loss is material to repayment. Check the terms and disclose early rather than late.
What if I stay quiet?
Concealing a material change can breach the agreement and trigger acceleration. Early disclosure usually opens up a restructuring instead.
Related reading
Covenant Breach on a Business Loan: What a UK Company Should Do
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Am I liable if I give a lender wrong information by mistake?
An honest mistake corrected promptly is usually manageable, but knowingly giving false information is…
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What do I do if I cannot make a business loan repayment?
Contact the lender before the payment is due, explain the position and propose a realistic plan — lenders far…
Read →Does the lender need to know my full debt picture?
Yes — disclose all existing borrowing, because lenders see most of it via credit files and bank data anyway,…
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.