A common and reasonable worry when a company borrows is whether a director will be personally on the hook. For Credicorp Flex, the answer is straightforward: we do not take personal guarantees from directors. The facility is granted to the company on the basis of the company's own position.
What this means
- The agreement is between Credicorp and your limited company or LLP.
- Directors are not asked to personally guarantee the company's Flex borrowing.
- We assess the company when deciding whether to offer a facility and on what terms.
Why we work this way
Lending to the company, and assessing the company, keeps the borrowing where it belongs: within the business. It lets directors run the company without putting their personal position behind everyday working-capital decisions.
Responsibility still matters
No personal guarantee does not mean no responsibility. Drawings commit the company, and the company is expected to repay them under the terms in its offer. Directors should manage the facility prudently, keep within the limit, and repay on schedule. If your company's circumstances change, contact our support team early. As business lending, Flex sits outside the consumer-credit regime, so FOS and FSCS do not apply.
See also: Do you take a personal guarantee from directors?, Does Flex affect my company's credit profile?, Who is eligible for Credicorp Flex?.