2 min read
The squeeze
Fixed repayments continue whatever your sales do. A meaningful turnover fall can tighten cash flow fast, which is exactly why lenders want coverage headroom rather than a payment that only works at full revenue.
Protecting yourself
Borrow with affordability headroom, keep a cash buffer, and if trading dips, talk to the lender early about a temporary arrangement — see what to do if you cannot pay. Without a personal guarantee, the risk stays with the company.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. With no personal guarantee, even a tough trading patch does not put your personal assets at risk. See business loans or apply online.
Frequently asked questions
Do repayments drop if my sales fall?
No. Repayments are fixed regardless of turnover, so a sales drop squeezes cash flow. That is why affordability headroom and a buffer matter.
What should I do if turnover falls?
Lean on your buffer and contact the lender early to discuss a temporary arrangement. Proactive contact almost always beats a silent missed payment.
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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.