Affordability is at the heart of responsible lending. Before we lend, and before you borrow, the central question is the same: can the company meet the repayments without putting the business under strain? Thinking this through honestly before you apply protects your company.
Affordability is about the company
Because Credicorp lends to UK limited companies and LLPs for business purposes — not to individuals — affordability is judged against the company's trading, not your personal finances. We look at how money flows through the business and whether there is reliable room for the repayments.
How to weigh it yourself
- Look at your typical monthly income after regular outgoings.
- Ask whether repayments at the rate and term in your offer would still leave a buffer in a slow month.
- Factor in seasonality and any costs already committed.
- Avoid borrowing to the very edge of what a good month could cover.
A buffer is not pessimism
Leaving headroom means an unexpected quiet stretch does not turn a manageable repayment into a problem. Borrowing that the company can absorb comfortably is borrowing that helps rather than hinders.
What this means for protections
We do not take a personal guarantee from directors — the obligation is the company's. But these agreements sit outside the FCA consumer-credit regime, so there is no Financial Ombudsman Service access or FSCS cover. The specific figures are confirmed only in your offer; assess affordability against those before you accept.
See also: How to prepare your company before you apply, What an affordability assessment looks at for a company, What affordability means for a business loan.