A limited company or LLP that is part-way through a Company Voluntary Arrangement, or running another formal repayment plan, can still apply to Credicorp. A live CVA is a serious signal and we treat it as one, but it is not an automatic refusal. What we look at is whether the company is meeting the plan as agreed and whether a new, separate commitment would genuinely help the business rather than stretch it past the point the arrangement was meant to fix.
What a CVA is, in plain terms
A CVA is a legally binding agreement between an insolvent or struggling company and its creditors to pay back some or all of what is owed over a set period, usually supervised by an insolvency practitioner. The company keeps trading while the plan runs. It is one of several formal routes a business can take, and it sits alongside informal arrangements, time-to-pay deals with HMRC, and other repayment plans. For the wider picture, see what insolvency means.
How a live arrangement factors into the decision
We assess the business as a whole rather than reacting to the label "CVA" on its own. The arrangement is one important input among several, and we weigh it against how the company is actually trading now.
- Whether payments under the CVA or repayment plan are up to date and being met on schedule
- How far through the term the arrangement is, and how it is progressing
- What the company looks like today from Open Banking data or recent statements
- Whether the supervisor of the arrangement permits the company to take on further borrowing
- Whether new finance would relieve pressure and support recovery, or simply add another layer of cost
Check the terms of your arrangement first
Many CVAs and formal plans place limits on taking on new credit while the arrangement is live, and some require the supervisor’s consent before the company borrows again. Before you apply, check what your own arrangement allows and speak to your insolvency practitioner or supervisor if you are unsure. Applying for finance you are not permitted to take on helps no one, so it is worth confirming the position up front.
It is about affordability, not punishment
Our job is to lend responsibly, which means asking whether finance helps your business or risks undoing the progress the arrangement represents. A company that is meeting its CVA, trading steadily, and has a clear commercial use for the money may still receive an offer. A company already at full stretch may be offered a smaller amount, a different product, or declined. That outcome protects both sides. The same principle runs through how existing debt affects the decision and the broader view in how we decide whether to lend.
Be straight with us about the position
Telling us about a CVA or repayment plan up front helps your application rather than harming it. We would far rather assess an accurate picture than discover an undisclosed arrangement later. Open Banking and the documents we ask for tend to reveal the real position anyway, so candour simply makes the assessment cleaner and faster.
How a CVA differs from a CCJ
A CVA is a voluntary, ongoing arrangement the company has entered into; a County Court Judgment is a court order recording a debt. They are different things and we treat them differently, though both are part of the wider eligibility picture. If a judgment is also in play, whether a CCJ against your company affects eligibility covers that side in full.
Credicorp is an exempt business lender to UK limited companies and LLPs only, not to sole traders or individuals, and we are a lender rather than a broker. The borrower is the company, with no personal guarantees from directors. Because this is business lending outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS. The rate, term and repayments in any offer are specific to your business and shown to you before you commit.
See also: Can a newly formed company apply?, Can a charity or charitable company apply?, Can a CIC or community interest company apply?.