When you look for business finance you will meet two kinds of company: direct lenders, who lend their own money, and brokers, who arrange finance through a panel of lenders. Knowing which you are talking to changes how you read the offer.
Borrowing from a direct lender
A direct lender makes the decision and provides the funds itself. Credicorp is a direct lender. There is one relationship, one set of terms and one point of contact, which usually means clearer communication and a single, transparent cost.
Using a broker
A broker does not lend; it matches you to a lender, sometimes across many. That can be useful if your circumstances are unusual and you want options surfaced for you. The points to check are how the broker is paid, whether a fee is added to your cost, and which lender you ultimately contract with.
Questions worth asking
- Are you the lender, or are you arranging finance through someone else?
- Is there a broker fee, and is it shown separately?
- Who will I actually have a contract with?
The Credicorp position
Because Credicorp lends directly to UK limited companies and LLPs, there is no intermediary fee layered on top, and your agreement is with us. As an exempt business lender we sit outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Is Credicorp a lender or a broker?, What is the difference between interest and fees? and Secured vs unsecured business lending: what's the difference?.