Consolidating or refinancing existing business borrowing can be a valid purpose, but it deserves a careful eye. The affordability test still applies to the total position, and consolidation only helps if it genuinely leaves the company better off — not if it simply moves debt around.
When it can help
If tidying several commitments into one manageable repayment eases your cash flow and the numbers genuinely improve, that is a sensible business purpose — what counts as a business purpose. We will still assess whether the company can afford the new arrangement — what does assessing affordability mean.
If the underlying problem is too much debt for the business to carry, more borrowing rarely fixes it. Where things are already tight, support and free debt advice are the better route — and we would point you there honestly.
Short-term, remember
A Credicorp Business Loan is short-term working capital, so it suits consolidating short-term commitments, not replacing a long-term facility. Model the before-and-after at Credicorp Tools, and read the comparison guides at Credicorp Learn. Existing debts are weighed as in can i apply with an outstanding bounce back loan.
If it genuinely improves your position, 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: Can I apply if my company has an outstanding Bounce Back Loan?, What does 'assessing affordability' actually mean?, What does credicorp do if i become unable to pay.