Applying

Can I apply if my company has more debt than usual right now?

You can still apply, but be honest with yourself first: more borrowing on top of a heavier debt load only makes sense if the business can genuinely afford the extra repayment. Affordability is assessed on the whole picture, so existing debt is very much part of the sum.

The whole-position test

We read your outgoings, including existing loan repayments, and ask whether there is real headroom for more — what does assessing affordability mean. A temporarily higher debt level with strong income may be fine; a stretched position with little headroom points to a smaller offer or none. This is the most common reason for a decline.

Be careful, not just hopeful

If debt is climbing and cash is tight, borrowing more can deepen the problem. Where things are genuinely strained, support and free debt advice are the responsible route — we would point you there rather than lend into difficulty.

If the extra is affordable

Model the combined repayments at Credicorp Tools, ask for an amount that fits the headroom — does applying for a larger amount make a decline more likely — and keep existing commitments in good order — can a company with arrears elsewhere still apply.

If it genuinely fits, apply.

We lend only to UK limited companies and LLPs, the loan is to the company with no director personal guarantee, and this is business finance outside the consumer-credit regime — as an exempt lender under Article 60B of the Regulated Activities Order we sit outside FCA consumer-credit regulation, so the Financial Ombudsman Service and FSCS do not apply.

See also: What is the single most common reason applications are declined?, What does credicorp do if i become unable to pay, Does applying for a larger amount make me more likely to be declined?.

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