Cashflow finance can be genuinely useful, but only when it is used for the right reasons and sized to the right need. The difference between finance that helps and finance that hurts usually comes down to a few honest questions you ask before you borrow.
Ask these before you commit
- Is this a timing problem or a profitability problem? Finance fixes timing, not losses.
- Can I clearly identify the money that will repay it?
- Is the cost of the finance smaller than the cost of not having it?
- Have I borrowed the amount I actually need, not the maximum available?
- Does the repayment fit comfortably within my forecast cashflow?
Signs you should pause
Be cautious if you are borrowing to cover routine losses, repaying one facility by taking another, or borrowing because you have not looked at your numbers rather than because you have. These are signals to review the business, not to add more debt.
Borrow with eyes open
Read your offer in full before you sign. Understand the rate shown, your agreed term, and exactly what your repayments will be. If anything is unclear, ask us. Responsible borrowing is informed borrowing.
Credicorp lends only to UK limited companies and LLPs for business purposes, never to individuals or sole traders, and we take no personal guarantees. As an exempt lender we sit outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply.
See also: Can business finance help bridge a short-term cashflow gap?, How does a Credicorp facility differ from invoice finance? and Building a thirteen-week cashflow forecast.