When comparing business finance you may notice that some lenders operate under consumer-credit regulation and others do not. The distinction is not a quality judgement; it reflects who the borrower is and what the loan is for. Understanding it helps you compare protections honestly.
Regulated consumer credit
Consumer-credit regulation is designed to protect individuals, and certain smaller business borrowers, when they take on credit. Where it applies, borrowers generally have recourse to the Financial Ombudsman Service and other consumer protections.
Exempt business lending
Some business lending falls outside that regime because of who borrows and why. Lending to incorporated businesses for genuine business purposes, above the consumer thresholds, can be exempt. In that case the consumer-credit protections, including the Financial Ombudsman Service and FSCS, do not apply.
What this means when comparing
- Check which regime each offer sits under, not just the cost.
- Where consumer protections do not apply, read the agreement especially carefully.
- Ask the lender directly if you are unsure.
Where Credicorp sits
Credicorp is an exempt business lender. We lend only to UK limited companies and LLPs, for business purposes. Because of that, our lending is outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. We aim to make our terms clear and fair regardless, and we are always happy to explain them.
See also: What is the exempt business lending market?, What does it mean that Credicorp is an exempt business lender?, What protections apply when a loan is outside the FCA regime?.