There is no single best way to fund a business. The UK market offers several kinds of finance, each suited to a different need. Here is a plain tour so you can place any one option, including ours, in context.
Common types of business finance
- Term loan: a lump sum repaid over an agreed period. Good for defined, one-off needs.
- Revolving or flexible facility: an arrangement you draw against as needed. Good for variable working capital.
- Invoice finance: borrowing against unpaid invoices to release cash tied up in your sales ledger.
- Asset finance: funding specific equipment or vehicles, often secured on the asset itself.
- Overdraft: a buffer attached to a business bank account for short, small swings.
- Equity: selling a share of the business for investment, with no repayment but a loss of ownership.
Where Credicorp fits
Credicorp provides short-term lending to UK limited companies and LLPs through two products, Credicorp Flex and Credicorp Slice. These suit working-capital and defined-purpose needs over shorter horizons. They are not a substitute for long-term investment finance or equity.
Choosing well
Match the finance to the need: short-term tools for short-term gaps, longer or equity funding for long-term growth. Borrowing short to fund something permanent rarely ends well. If you are unsure which category your need falls into, talk it through with your accountant first.
See also: Alternatives to short-term lending: overdraft, card, invoice finance, grants, Can business finance help bridge a short-term cashflow gap? and How to budget loan repayments into your cash flow.