It is easy to compare business finance on price alone, but a low cost is irrelevant if you do not meet the lender's criteria. Comparing eligibility early saves wasted applications and protects you from the disappointment of being declined after pinning hopes on one offer.
What lenders typically look at
- Business type: some lend to sole traders, others only to incorporated businesses.
- Trading history: how long you have been operating.
- Turnover and trading pattern: the size and steadiness of income.
- Purpose: whether the funds are for business use.
Why criteria differ so much
Each lender sets criteria around the kind of risk it is comfortable with. That is why one will fund a business another turns away. Reading the criteria first tells you where you genuinely stand before you compare costs.
Credicorp's eligibility in brief
Credicorp lends only to UK limited companies and LLPs, and only for business purposes. We do not lend to individuals or sole traders. If you trade as a sole trader, you would need to be an incorporated company or LLP to apply. We lend to the company, not its directors, and do not take personal guarantees from directors.
A practical tip
Make a shortlist of lenders whose criteria you clearly meet, then compare cost and terms within that list. Comparing the right way round keeps your search efficient and realistic.
See also: Red flags to watch for when comparing business lenders, I have an offer but don't want to go ahead — what now? and Top-up eligibility: when can you borrow again?.