2 min read
What changes
Lenders become more selective in a recession, scrutinising affordability and sector exposure harder. Weak or over-leveraged businesses find it tougher; solid ones with evidenced cash flow remain fundable.
Positioning yourself
Keep records current, hold a cash buffer, and demonstrate resilient demand. A clear, conservative case reassures a cautious underwriter — read how to prepare.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. A no-personal-guarantee facility lets you build resilience through a downturn without risking personal assets. See business loans or apply online.
Frequently asked questions
Can I still borrow in a recession?
Yes, if your business is resilient with proven cash flow. Lenders are more selective, so strong fundamentals and clean records matter even more.
How do I improve my odds in a downturn?
Keep figures current, hold a cash buffer, evidence resilient demand, and present a conservative, clearly affordable case.
Related reading
Can I negotiate with a lender before I default?
Yes — and it is the single best move: a lender approached before a missed payment can restructure, defer or…
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How do I build a financial buffer for my business?
Aim for one to three months of fixed costs in reserve, built by setting aside a fixed share of income and…
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How do lenders assess the risk of lending to my business?
Lenders weigh affordability, trading history, credit conduct, sector and the purpose of the loan — cash flow…
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Does tax relief on interest make borrowing cheaper?
Yes for a profitable company — relief on deductible interest lowers the after-tax cost below the headline…
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.