Two questions we hear regularly:
- "We would like to borrow a bit more — can we add it to the current loan?"
- "Can we spread the current repayments over a longer period to make them smaller?"
Both are new lending decisions, not changes that can be made automatically online. A loan top-up is a further advance, and a term extension changes the repayment schedule — neither happens at the click of a button. Responsible lending means we assess any further borrowing for affordability on its own merits. Where an extension to the term increases the total cost of the credit, we set that out clearly and re-agree it with you before it takes effect.
How a business loan top-up works
If the company wants to borrow more on top of its existing loan, please tell us using the General Support Enquiry form on our Forms & Requests page and we will explain the next steps. We will look at the company's overall position — its recent cashflow, the existing balance with us and any other borrowing it holds — and decide whether further lending is appropriate.
If a top-up is appropriate, we will issue a fresh Key Information Sheet (KIS) showing the new amount, the new rate, the new payment and the new total payable. Nothing changes on the account until the new Business Loan Agreement is signed.
How a term extension works
Extending the term spreads the repayment over more time. That reduces each payment. But it leaves the balance in place for longer, so it increases the total cost of the credit across the life of the loan. Interest continues to accrue on the outstanding balance for the additional period. In other words, a smaller monthly payment is traded against a higher overall amount repayable. We will show both figures clearly — the new payment and the new total payable — before any change is made, so the company can weigh the lower monthly outlay against the extra cost over the full term.
If the reason for asking is that the current schedule has become hard to meet, please look at the alternatives in our struggling-to-pay article first — particularly a Hardship Variation or a Payment Arrangement. These are designed for exactly that situation and may produce a better outcome than a longer term.
Things we cannot do
- We cannot consolidate other lenders' debts into the Credicorp loan as part of a top-up.
- We cannot extend the term beyond the limits of the original product.
- We cannot agree a new amount or a new term without going through the proper assessment and disclosure.
A loan top-up is treated as a further advance, which means it goes through the same affordability assessment we apply to a first application — not a quick adjustment to a credit limit. We look at the company's current circumstances, not the position it was in when the original facility was agreed, because affordability can change as a business grows or contracts. If the assessment shows that more borrowing would stretch the company's finances, the responsible answer may be to decline the top-up even though the existing loan is being repaid on schedule.
What to have ready before you ask
To help us assess a top-up or a longer repayment schedule quickly, it is worth having a clear picture of the company's recent trading to hand — typically the latest management figures or bank statements, an idea of the amount you want to borrow or the new term you have in mind, and the reason for the request. The more context we have, the sooner we can tell you whether a further advance is appropriate and set out the new figures in a Key Information Sheet for you to consider.
Whatever you are weighing up, free, independent help with business money worries is available from Business Debtline — see our article on free debt advice in the UK.