What you can use a loan for

Bridging the gap between one contract ending and the next

Project-based and contract-driven businesses often face a predictable but awkward gap: one contract winds down before the next ramps up, yet the overheads — staff, premises, vehicles — carry on regardless. A Credicorp facility can bridge that interval so a UK limited company or LLP keeps its team and capacity intact ready for the new work.

When bridging makes sense

  • You have a confirmed or strongly pipelined next contract.
  • Letting go of staff or capacity now would cost more than the bridge.
  • The gap is measured in weeks, not a permanent decline in work.

How it works

You apply as a company for the business purpose of bridging. If approved, you draw the funds to cover overheads through the gap and repay over the term and at the rate shown in your offer document once the new contract is paying.

Be realistic about the next contract

Bridging finance assumes the next phase of work genuinely arrives — be honest about how firm that pipeline is. The loan is to the company, with no director personal guarantee. As an exempt business lender outside the FCA consumer-credit regime, Credicorp facilities are not covered by the Financial Ombudsman Service or FSCS.

See also: Bridging the gap between one contract ending and the next starting, Can business finance help bridge a short-term cashflow gap? and Using finance to cover payroll during a cashflow gap.

Already a customer? Sign in to your account Sign in

Ready to apply?

Apply online in minutes. We lend to UK limited companies and LLPs — no personal guarantee required.

Apply for a Credicorp loan →
Back to Help Centre

Still need help? Our team is here. Contact us or search the help centre for more answers.