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What it means
A line of credit is an agreed limit the business can borrow against whenever it needs to, up to the ceiling, repaying and reusing it. It's effectively another name for a revolving credit facility. The appeal is flexibility: the funds sit ready, and you draw only what and when you need, paying interest on the drawn amount.
How it differs from a loan
A loan is a fixed lump sum with a set repayment schedule; a line of credit flexes with your needs. For a defined one-off cost, a loan is simpler; for an on-and-off need — cash-flow gaps, seasonal swings — a line of credit is cheaper because idle headroom costs little. Credicorp Flex is a line built for UK companies; compare it with a fixed loan.
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 line of credit the same as a revolving facility?
Effectively yes — both give a reusable borrowing limit you draw from, repay and redraw, paying interest only on what's drawn. 'Line of credit' and 'revolving facility' are used interchangeably for business finance.
When is a line of credit better than a loan?
When your need is recurring or unpredictable — cash-flow gaps, seasonal dips. You pay only for what you draw, so idle headroom is cheap. For a single fixed cost, a term loan is usually simpler and can be cheaper.
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What is Credicorp Flex?
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Should I borrow a fixed amount or use a facility?
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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.