Many suppliers offer a discount for paying within a short window rather than on standard terms. For a company with steady margins, taking those discounts consistently can meaningfully improve unit economics. The catch is that you need the cash available the moment the invoice arrives. A Credicorp facility can give a UK limited company or LLP that flexibility.
When the maths works
This only makes sense when the discount you capture is worth more than the cost of the funding. Compare the saving against the rate shown in your offer over the time the funds are outstanding. If the discount comfortably exceeds the cost, you are effectively buying margin.
How companies use it
- Settle priority supplier invoices inside the discount window.
- Repay the facility as your own customer receipts arrive.
- Build a reputation as a prompt payer, which can improve future terms.
Points to weigh
The facility is to the company, with no director personal guarantee. As an exempt business lender, Credicorp falls outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. Run the discount-versus-cost comparison on every drawing rather than assuming it always pays off.
See also: Should I borrow to take a supplier's early-payment discount?, Funding a new hire before they become profitable and Are there fees for paying off my facility early?.