Business insurance is one of those costs that arrives once a year as a single, sizeable bill. Professional indemnity, public liability, commercial property, fleet and combined business cover are usually quoted as an annual premium, and the renewal date doesn't move just because your cash is tied up elsewhere. Paying it all at once can pull a meaningful chunk out of your working capital in a single week. A Credicorp facility lets a limited company or LLP spread that premium over an agreed term, so the cover stays live and the day-to-day cash stays where it's needed.
Why companies spread an annual premium
- The premium is fixed and dated, but it rarely lands in a month when cash is comfortable.
- Letting cover lapse — even briefly — can breach client contracts, lease terms or lender conditions, and a gap can be expensive to reinstate.
- Many insurers and brokers offer their own instalment plans, but having your own funding line means you control the term and aren't tied to a single provider's terms.
- Smoothing a known, recurring obligation is usually easier to plan around than a one-off hit to reserves.
How it works
You apply as a limited company or LLP, for a genuine business purpose. If we make an offer, the rate and term you see are the ones set out in your offer document — there are no figures quoted here, because pricing belongs in your own quote. You draw the funds, pay the premium, then repay over the agreed schedule. We don't take personal guarantees from directors, so the obligation sits with the company rather than with you personally.
If you'd rather the supplier was paid directly, Credicorp Slice is built for exactly this kind of one-off bill — insurance renewals are among the bills it covers. With Slice, we settle the insurer or broker in full and you repay us over the term, so your account with them is squared away immediately. If your premiums and other lumpy costs recur through the year, a revolving option such as Flex for managing supplier and stock costs may suit better, because the headroom refreshes as you repay.
Choosing between paying it yourself and funding it
Funding a premium makes sense when paying it outright would leave your buffer uncomfortably thin, or when the cash is better deployed in stock, payroll or a customer order that earns a return. It's less suitable if the renewal simply reflects a cost the business can absorb without strain. The same logic applies to other large, predictable outgoings — see smoothing lumpy, irregular income and covering an unexpected cost without draining reserves for related approaches.
Things to keep in mind
Spreading a premium is sensible when the underlying cash position is sound and you're simply matching the cost to the year it covers. Because Credicorp lends to UK limited companies and LLPs outside the FCA consumer-credit regime, this facility isn't covered by the Financial Ombudsman Service or the FSCS. We don't lend to sole traders or individuals. Always check the figures in your offer against your cash-flow forecast before you draw, and confirm the renewal date with your insurer so the funds land in time.
See also: Can business finance help bridge a short-term cashflow gap?, Bridging a late CIS or VAT refund, Bridging an R&D tax credit claim.