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What it means
The quick ratio — also called the acid-test — is current assets minus stock, divided by current liabilities. Unlike the current ratio, it strips out inventory because stock can be slow to turn into cash. A figure near 1.0 means the company could settle everything due within a year from cash, debtors and other liquid assets alone.
What this means for your company
Lenders read the quick ratio as a liquidity signal, not a pass/fail. A ratio a little under 1.0 is common in trade that runs on trade credit, and is not a problem if debtor days are short. Work yours out with the quick ratio calculator and track it monthly in your management accounts. If it is falling, the fix is usually faster invoice collection or a working-capital facility rather than more stock.
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
Is a higher quick ratio always better?
No. Above roughly 1.5–2.0 can mean cash is sitting idle instead of funding growth. The aim is enough liquidity to cover obligations comfortably, not to hoard cash.
Does a lender require a minimum quick ratio?
Credicorp does not set a hard cut-off. It looks at the trend and the wider picture — turnover, margins and how you use trade credit — rather than a single number.
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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.