Most difficulties with business borrowing come not from the borrowing itself but from a handful of avoidable habits. Knowing what they are makes them easy to sidestep.
Borrowing more than the need
It can be tempting to draw the full amount available rather than the amount the task requires. Drawing only what you need keeps the cost down and the facility healthy.
Treating it as set-and-forget
A facility rewards a little ongoing attention. Companies that never look at the balance until a problem appears tend to be the ones surprised by it. Regular reconciliation and a quick periodic review prevent that.
Leaving problems unspoken
- Waiting until a payment has failed before getting in touch.
- Letting outdated bank details cause a collection to bounce.
- Assuming a tight month will sort itself out.
Not reading the offer
Your offer is the document that governs everything: the rate shown in your offer, your agreed term, how interest accrues, and what happens on a late payment. Read it before accepting and refer back to it whenever you are unsure.
Credicorp lends only to UK limited companies and LLPs for business purposes, and the loan is to the company. As an exempt business lender we are outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Should you repay early or keep the facility running?, Matching the borrowing to the need it funds, Common mistakes to avoid with a Flex facility.