Almost every trading business hits points where money leaves the account before it comes back in. You pay suppliers, wages and rent on fixed dates, but customer payments arrive on their own schedule. That timing mismatch is a cashflow gap, and it is one of the most common reasons UK limited companies look at short-term finance.
What a facility actually does here
A Credicorp facility gives your company funds to cover the gap, then you repay over your agreed term at the rate shown in your offer. It does not change whether the underlying work is profitable. It buys you time so a profitable business is not held back by a timing problem.
When it makes sense
- You have confirmed orders or invoices coming in, but not yet in the bank.
- The gap is temporary and you can see the money that will repay it.
- Missing a payment now would cost you more than the finance does.
When to pause
If the gap is structural rather than temporary, meaning your costs simply exceed your income each month, borrowing can deepen the problem. In that case it is worth reviewing pricing, costs and terms first.
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not lend to individuals or sole traders, and we do not take personal guarantees from directors. As an exempt lender we sit outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Using finance to cover payroll during a cashflow gap, Bridging the gap between one contract ending and the next and Can I pause payments if my company hits a cash-flow gap?.