What you can use a loan for

Funding a quarterly rent or business rates bill

Rent and business rates often fall in large quarterly lumps that don't line up neatly with how revenue actually comes in. A company can be perfectly viable across the year yet feel real pressure in the week a quarter's premises costs land. A Credicorp facility can smooth one of those payments so a UK limited company or LLP keeps its premises secure without draining operating cash.

Why these bills bite

  • Quarterly billing concentrates a big cost into a single date.
  • Premises costs are fixed regardless of how trade is going that month.
  • Falling behind on rent can put your lease and location at risk.

How it works

You apply as a company for the business purpose of meeting premises costs. If approved, you draw the funds, pay the landlord or local authority, and repay over the term and at the rate set out in your offer document.

Use it for timing, not decline

This works well as a way to spread a lumpy but affordable cost — less so if premises are simply unaffordable, which is a structural issue worth addressing directly. The loan is to the company, with no director personal guarantee. Credicorp is an exempt business lender outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.

See also: Can I use Credicorp to pay a Corporation Tax bill?, Funding expansion into a second site or location and Funding monthly payroll when receipts are delayed.

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