Learn: comparing loans

Should my limited company use Credicorp or a business credit card?

Business credit cards and Credicorp products both offer revolving-style access to funds, but they are designed for different use cases. For many companies the answer is to use both — for different purposes.

What credit cards do well

A business credit card is excellent for recurring supplier purchases, travel, and expenses that fit neatly within a monthly statement cycle. Rewards programmes and purchase protection add value for frequent small transactions. Most cards offer an interest-free window if the balance is cleared in full each month.

Where Credicorp fits instead

Credit cards typically carry low limits and high revert rates once the interest-free period lapses. They are not designed to fund a £20,000 stock order, cover a quarterly VAT bill, or bridge a large debtor gap. Credicorp's Business Loan provides a fixed lump sum for a defined short term. Credicorp Slice spreads a specific company bill — such as a supplier invoice or tax charge — over three or four weekly instalments at a flat 6% fee with no compounding interest. Neither product requires a director personal guarantee.

Director liability

Many business credit cards require a director or sole-trader personal guarantee, making the director personally liable for the company's card debt. Credicorp lends to the company directly — no personal liability for directors.

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: How Credicorp Slice spreads a bill, Credicorp vs a bank business loan.

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