Credicorp runs an affordability assessment on every application, but you do not have to wait for us to run it before thinking about whether the borrowing works for your company. A bit of honest self-review before you apply often leads to a better outcome: the right amount, at a term your company can manage, rather than an offer for less than you hoped or a decline that could have been avoided.
Start with your monthly surplus
The most useful figure to understand is how much money typically flows through the business after its regular commitments — wages, rent, supplier payments, existing finance repayments, tax instalments. That surplus is what a new repayment would come from. The question to ask yourself is: can a new repayment sit comfortably within that surplus, even in a slower month?
You do not need a polished forecast. A realistic look at three to six months of business bank statements will give you a usable picture of what lands and what leaves.
Think about your worst recent month, not your best
It is tempting to anchor expectations to a busy period. The assessment looks at the pattern as a whole, including quieter stretches. If repayments would be tight in your normal slow periods, that is the signal to size the request more conservatively or to time the application for when the trading picture is stronger. See timing your application around your cash flow for guidance on when to apply.
Factor in your existing commitments
If your company already carries finance — a bounce-back loan, invoice finance, a leasing arrangement, a regular overdraft — those repayments are already a call on the company's income. A new loan adds to that. The assessment will see all of it; you should factor it in too. We look at how existing debt sits alongside the new request in how existing debt affects the decision.
Match the amount to a real purpose
Affordability is not just about whether you can meet the repayments — it is also about whether the borrowing makes sense for the business. A loan taken for a specific, costed purpose (covering a supplier invoice, bridging a payment gap, buying equipment) is easier to size correctly than borrowing without a clear anchor. For guidance on sizing the request, see how much should my business borrow.
Honest signals that the timing might be wrong
- Repayments would exceed a meaningful share of your average monthly surplus
- You have taken on significant new commitments in the last few months
- Income has been unusual lately — an atypically busy period that will not continue, or a recent drop
- The loan would service other debt rather than fund genuine business activity
None of these is an automatic reason not to apply, but they are worth weighing before you start. A company that applies when the timing and amount are right is in a stronger position than one that applies speculatively and comes back later. For what the assessment itself looks at, see what an affordability assessment looks at for a company.
What a sensible self-check looks like
- Review three to six months of your main business bank statements
- Note your average monthly income and your regular outgoings separately
- Calculate the gap — that is your approximate monthly surplus
- Look at how a weekly or fortnightly repayment at your intended amount and term sits within that surplus
- Repeat that exercise for a quiet month, not just an average one
If the numbers hold up in the weaker month, the application is likely to be on solid ground. If they do not, adjusting the amount or the timing before applying is a better use of your effort than reapplying after a decline. See how to prepare your company before you apply for the broader pre-application checklist.
Credicorp lends only to UK limited companies and LLPs for business purposes, with no personal guarantee from directors. As an exempt business lender we sit outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: What an affordability assessment looks at for a company, How existing debt affects the decision, How to prepare your company before you apply.