2 min read
Why losing an overdraft hurts
An overdraft is flexible working capital, and banks can reduce or withdraw it with little notice. Losing it suddenly can leave a business that was managing fine short of headroom.
Replace the headroom
A business credit facility gives you a line you draw on as needed, replacing the overdraft's flexibility on terms that don't change at the bank's discretion.
Right-size it
Work out the genuine peak working-capital need on the working-capital calculator and arrange a facility that covers it comfortably, so you're never caught short again.
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 when the numbers work.
Frequently asked questions
What can replace a business overdraft?
A revolving credit facility or working-capital line does the same job — flexible funds you draw on as needed and repay when cash comes in — but on agreed terms rather than at the bank's discretion.
Why do banks withdraw overdrafts?
Often for reasons unrelated to your performance — policy changes, risk appetite, sector reviews. Having an independent facility means one bank's decision never leaves you without working capital.
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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.