What is responsible lending and why does it

2 min read

AffordableOnly what fits

TransparentClear on cost

SupportiveIf things slip

What it looks like

Responsible lending has three pillars: affordability (checking the repayment genuinely fits your cash flow, not just approving the maximum), transparency (stating the total cost and every fee plainly), and forbearance (working with customers in genuine difficulty rather than escalating). Business lending sits outside the FCA's consumer-credit rules, so a lender's own standards matter more.

Why it matters for you

A responsible lender is protecting you from a loan that could sink the business, and its behaviour signals how it will treat you if things get tight. Look for no hidden fees, no personal guarantee, no early-repayment penalty, and clear hardship support. These are the same standards Credicorp holds itself to — the responsible-lending page sets them out.

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

Are business lenders regulated like consumer lenders?

Not identically. Most commercial lending to companies falls outside the FCA's consumer-credit regime, so the lender's own standards and conduct carry more weight. That makes choosing a genuinely responsible lender important.

How can I tell if a lender is responsible?

Transparent total cost, no personal guarantee, no early-settlement penalty, a real affordability check, and clear hardship support. A lender that will state all of these plainly, in writing, is showing its hand.