Before any funds are sent, you will sign a Business Loan Agreement electronically in the portal. This is a legally binding contract, so it is worth taking a few minutes to read each section. This guide explains what you will find and what to pay attention to.
Key sections of the agreement
- Parties — identifies your company (by name and company number) as the borrower and Credicorp as the lender. Check that your company name and number are exactly correct.
- Loan amount and purpose — states the principal (the amount being lent, before any cost of credit). Confirm this matches what you accepted in the portal.
- Total cost of credit and total amount payable — the total cost of credit is the fixed charge for borrowing; the total amount payable is the principal plus that charge. These are also shown on your Key Information Sheet (KIS) alongside the annualised cost for comparison purposes.
- Repayment schedule — a table showing each payment date and the amount due on that date. Check every date and amount against your company's expected cash-flow position before signing.
- Default and arrears — explains what happens if a payment is missed, including any additional charges (illustrative, not a quote of specific figures). Understanding this section is important if your company's income is seasonal or irregular.
- Early repayment — sets out whether and how you can repay the loan before the final scheduled payment date, and what the financial effect of doing so is. See how the Credicorp early repayment process works for a fuller explanation.
What to do if something looks wrong
If any detail in the agreement does not match what you expected — a different loan amount, wrong repayment dates, or a company number that does not match yours — do not sign. Contact our team immediately so we can investigate before the agreement is executed. Once signed, the terms are binding.
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: What happens after you accept a Credicorp loan offer?, How the Credicorp early repayment process works.