Answer

Should I borrow a lump sum or arrange a flexible facility?

A lump sum suits a known one-off cost; a flexible facility suits recurring or uncertain needs — match the finance to the shape of the spend, not the other way round.

2 min read

Known costLump sum

Uncertain needFlexible facility

Match the shapeTo the spend

Two different tools

A fixed loan gives you a lump sum for a defined purchase and a clear repayment schedule. A flexible facility lets you draw and repay as needs vary. Each fits a different kind of need.

When each fits

Choose a lump-sum loan for a one-off — a machine, a fit-out, an acquisition. Choose a credit facility for recurring or unpredictable working-capital swings.

Don't overpay for the wrong shape

A lump sum you don't fully use still accrues interest; a facility you never draw costs little. Compare the two for your case on the loan comparison calculator.

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

When should I choose a facility over a fixed loan?

When the need is recurring or uncertain — variable working capital, seasonal swings, standby cover. A facility lets you draw only what you need, when you need it, and pay accordingly.

Is a lump-sum loan ever the wrong choice?

For an uncertain or ongoing need, yes — you pay interest on the whole sum whether or not you use it all. A flexible facility fits variable needs far more efficiently.