If your company pays an amount that is less than the full balance, that payment is allocated to your facility in the order set out in your agreement. Understanding this order helps you see how a partial payment changes what remains.
The usual order of allocation
Payments are typically applied first to any amount that is already due or overdue, then to interest accrued under your agreement, and then to the outstanding principal. Your agreement is the definitive source for the exact order on your facility, so check it if you need certainty.
Why allocation matters
- A partial payment that only covers the due amount leaves the rest of the balance running.
- Paying above the due amount can start reducing principal sooner.
- Clearing arrears first helps keep the facility in good standing.
Getting it right
Always use the correct payment reference so funds reach the intended facility. If your company has more than one facility with us, tell us which one a partial payment is for, otherwise we apply it according to our standard process.
Credicorp lends only to UK limited companies and LLPs for business purposes. This facility is outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Can my company make a partial payment if it cannot pay in full?, How are my payments allocated to what I owe? and What if my company can only pay part of this month's amount?.