With a revolving Flex facility, a difficulty can affect the limit as well as the balance. Understanding this helps you plan.
A limit may pause or reduce
Where a company is struggling, we may pause new drawdowns or lower the limit while things stabilise. This is not a penalty; it is responsible lending — it stops the difficulty deepening through further borrowing.
Focus shifts to reducing the balance
During difficulty the priority is usually bringing the drawn balance down through a manageable plan, rather than drawing more. Interest accrues on what is drawn, so reducing it directly lowers the cost.
Limits can recover
As the company recovers and rebuilds a clean record, the available limit can grow again. A difficulty handled well does not permanently cap what the facility can do.
See how Flex difficulty works in the guide below.
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: Struggling to repay a Credicorp Flex drawdown, Managing difficulty on Credicorp Flex versus Credicorp Slice, Does being in difficulty stop me borrowing again later?.