Credicorp provides short-term business loans and revolving facilities for UK limited companies. As your business grows, your financing needs may change — and there will come a point where a different product or lender is a better fit. Recognising that point and transitioning well is a sign of good financial management, not a failure.
Signs your needs have outgrown short-term finance
- You are rolling over frequently — if your Flex balance never really comes down, or you immediately take a new term loan after repaying the previous one, the underlying cash-flow issue may not be short-term.
- The amounts are too small — as your business grows, a £500 maximum limit may not be sufficient to fund meaningful purchases or bridge gaps of any size.
- The cost does not pencil out — at 0.25% per day, a short-term loan is cost-effective for a brief, specific gap. For funding you need for 6–12 months, a longer-term business loan from a bank or alternative lender will typically cost significantly less in total interest.
- You qualify for better products — if your company has a strong trading history, growing turnover, and a clean credit record, you may now qualify for mainstream business lending with more favourable terms.
How to time a transition well
- Repay your current Credicorp balance first — or at minimum, get a settlement figure and plan the full repayment. You do not want an outstanding balance with us while you are applying elsewhere, as it increases your reported debt load.
- Research alternative products — look at CBILS-successor schemes, challenger bank term loans, invoice finance, and asset finance depending on what you need the money for. The British Business Bank's Finance Hub is a good starting point.
- Apply before you are desperate — mainstream lenders take longer to process applications (weeks, not minutes). Start the process while you still have a runway, not when cash is tight.
- Close your Credicorp account cleanly — once you have repaid in full and do not plan further use, you can request account closure and download your final documents for your records.
Keeping Credicorp as a backup
Some businesses repay their Credicorp facility and close the account, then find they need short-term cover again during an unexpected gap. You can apply again at any time — your previous account history is taken into account in your new assessment. There is no penalty for using us intermittently.
See also: When and why to consider refinancing a business loan, How to close your Credicorp account, Preparing for the end of your facility.