2 min read
What set-off does
A set-off (or “combination”) clause lets a lender reduce your debt using credit balances it holds — for example, sweeping your current account to cover arrears. It is most potent when your lender is also your bank.
Managing the risk
Read the clause, and consider keeping your borrowing and day-to-day banking with different providers so there is no in-house balance to sweep. A standalone lender has nothing of yours to set off.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. Because Credicorp is not your bank, there is no account balance for a set-off clause to reach. See business loans or apply online.
Frequently asked questions
Can a lender take money from my account to cover a loan?
A set-off clause allows it where the lender holds your funds, which is why it bites hardest when your lender is also your bank.
How do I limit set-off risk?
Keep borrowing and banking with different providers, so the lender has no balance of yours to net against the debt.
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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.