Should I borrow a fixed amount or use a facility?

2 min read

One-offFixed loan

RecurringFacility

Match shapeCut cost

How to choose

A fixed-term loan suits a single, known cost — buying equipment, funding a specific project — where you want a set repayment and a clear end date. A revolving facility suits a recurring or lumpy need — bridging seasonal gaps, covering the wait for customer payments — because you draw only what you need and pay interest only on that.

What this means for your company

The mistake is paying loan interest on a lump sum that mostly sits in the bank. If your need comes and goes, a facility is cheaper because idle headroom costs little. Credicorp Flex is a revolving line built for exactly that pattern. If the need is a single fixed cost, a term loan's certainty wins. When unsure, sketch both against a cash-flow forecast.

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

Can I have both a loan and a facility?

Yes — many companies use a term loan for a big one-off and keep a small revolving facility for day-to-day gaps. Just keep the total affordable and avoid stacking many facilities at once.

Which is cheaper overall?

For a lump sum used steadily, a term loan is usually cheaper. For an on-and-off need, a facility wins because you only pay for what you draw. Match the product to how the money will actually be used.