Lending has its own vocabulary, and it should never be a barrier to understanding what you are agreeing to. This is a plain-English A–Z of the terms you are most likely to meet with us. Each entry has its own link, so you can point someone straight to a single definition.
A
Affordability assessment
Our check that the business can comfortably repay before we lend — looking at trading income, existing commitments and bank activity. See what an affordability assessment looks at.
APR (Annual Percentage Rate)
A standardised yearly cost figure that lets you compare credit on a like-for-like basis. Because our loans are short-term, a small daily interest cost expresses as a high-looking APR — see daily interest vs APR for why the headline number can mislead on a 14–84 day loan.
Arrears
Payments that are overdue. Falling into arrears can be reported to business credit reference agencies — see what arrears means and whether it affects your credit file.
B
Body corporate
A company in its own legal right — a limited company or LLP. Our borrowers are bodies corporate, which is why this is business lending, not consumer credit.
Business credit reference agency
An organisation that holds information about how a company manages credit. We use business credit reference data as part of our assessment — see what credit reference agencies receive.
Business purpose
The requirement that borrowing is wholly or predominantly for the business, not for personal use — this is what keeps it business lending. See wholly or predominantly business purpose.
C
Companies House
The UK registrar of companies. Filing your accounts and confirmation statement on time keeps your company record healthy and supports a stronger lending assessment — see how a business credit score works.
D
Daily interest
Interest charged for each day you hold the balance, rather than as one fixed yearly sum. Repaying early means fewer days of interest — see how interest is charged.
Direct Debit
An instruction letting us collect each scheduled payment from your business bank account on the due date. You stay protected by the Direct Debit Guarantee — see how to set up or change a Direct Debit.
Drawdown
Taking money from a facility. With Flex, each time you use part of your limit is a drawing.
E
Early settlement
Paying a loan off in full ahead of schedule. It usually saves interest; on a Business Loan an early-settlement charge of up to 28 days' interest may apply.
Establishment fee
A single £5 fee to set up a Business Loan, charged once — see the establishment fee explained.
F
Facility
An agreed credit limit you can draw against, rather than a single fixed loan. Credicorp Flex is a facility.
Forbearance
The support a lender gives a borrower in difficulty — for example a reduced payment or a short freeze. See repayment arrangements.
H
Hardship / forbearance variation
A temporary change to your payments — a reduced amount, a short freeze or a revised plan — when your business is in genuine difficulty. See what a hardship variation is.
K
Key Information Sheet (KIS)
The at-a-glance summary of your offer — amount, term, total cost and schedule — shown before you sign. See what the KIS shows.
O
Open Banking
A secure, read-only way to share your business bank data to support an application. It is optional and expires every 90 days — see how Open Banking consent works.
Open Banking consent
The time-limited permission you give for a read-only view of your business bank data. It is optional, expires every 90 days and can be revoked — see how Open Banking consent and revocation work.
Outstanding balance
What you still owe at a point in time, including accrued interest. It differs from a settlement figure, which is the exact amount to clear in full today — see balance vs settlement figure.
P
Personal guarantee
A promise by an individual to repay a company's debt personally. We never take one — the director who signs is not personally liable.
Principal
The amount you actually borrow, before interest and fees. The total cost of credit is capped at 100% of the principal.
R
Refer
An application outcome that is neither a clear yes nor no, so we look more closely — usually we just need a little more information. See what "refer" means.
Revolving credit facility
A reusable credit limit you can draw from, repay and draw again, rather than a single fixed loan. Credicorp Flex is a revolving facility.
Rollover
Extending or replacing a loan so the balance carries on rather than being cleared. Repeated rolling-over is rarely in your interest; if you need to, please talk to us.
S
SECCI
A "Standard European Consumer Credit Information" form, used for regulated consumer credit. Our lending is to companies and is not regulated consumer credit, so your equivalent summary is the Key Information Sheet.
Settlement figure
The exact amount needed to clear the loan in full on a specific date, including interest accrued to that date and any applicable early-settlement charge — it can differ from your displayed balance in either direction. See balance vs settlement figure.
Soft search
A credit check that does not leave a footprint visible to other lenders on the director's personal file. Applying with us does not mark your personal credit — see will applying affect my credit file.
T
Top-up
Adding to an existing loan rather than taking a new one. See topping up or extending a loan.
Total cost of credit
Everything you pay on top of the amount borrowed — interest plus fees. On a single agreement it is capped at 100% of the principal.
You will see "FOS" (the Financial Ombudsman Service) and "FSCS" (the Financial Services Compensation Scheme) mentioned in finance. Because our lending is to companies and is outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001, neither applies to it. Our complaints route ends with our final response and, if needed, the courts.
If a term you have met is not here, search the help centre or ask us — we are happy to explain anything in plain words.
See also: What is a CVA (Company Voluntary Arrangement)?, What is a SIC code?, What are accounts receivable?.