A bank overdraft and Credicorp Flex are both revolving facilities — you draw what you need, repay when you can, and the headroom resets. The differences lie in how you access them, how quickly limits can change, and what they cost.
Access and approval
Bank overdrafts are typically tied to your business current account and granted (or renewed annually) at the bank's discretion. The bank can reduce or withdraw an overdraft with relatively short notice, particularly if your account behaviour triggers a review. Credicorp Flex is a standalone facility, independent of your banking relationship, with an agreed limit and clear terms that your bank's decisions cannot affect.
Speed of access to funds
Once a Flex facility is active, drawing funds is fast — you are not waiting for bank authorisation each time. An overdraft is similarly instant once set up, but the set-up process itself can be slower, particularly if it requires a business relationship manager review or formal credit application through the bank's internal process.
Cost structure
Bank overdrafts typically charge a combination of an annual arrangement fee, a daily or monthly utilisation fee, and sometimes an EAR (effective annual rate) on balances. Credicorp Flex charges on the drawn balance only; there is no idle-limit fee for headroom you hold but have not drawn. For companies whose drawing pattern is intermittent, paying only on what is used can be materially cheaper than an overdraft with standing fees regardless of usage. Read the terms of each carefully and model your expected drawing pattern before comparing headline rates.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Revolving credit facility vs term loan, Slice vs a business credit card