Your company's borrowing record with Credicorp — and with credit reference agencies — is shaped not just by whether you repay, but by how you use credit. Understanding credit utilisation gives you a tool to manage this proactively.
What credit utilisation means
Credit utilisation is the ratio of your current outstanding balance to your total available credit. If you have a Flex facility with a £500 limit and currently owe £400, your utilisation is 80%. A high utilisation ratio can signal financial stress to lenders and may reduce what you can borrow in the future — even if every payment is on time.
How utilisation affects your Credicorp record
Credicorp looks at your utilisation when you request a top-up or a new loan. A pattern of consistently running close to your credit limit may suggest that your facility is not providing headroom — it is being used as a structural substitute for cash flow. A company that routinely keeps utilisation below 60–70% and repays promptly is a stronger candidate for a limit increase than one that is consistently at 100%.
How utilisation affects your company credit file
If Credicorp reports your facility to business credit reference agencies, a high utilisation rate on your credit file can affect how other lenders assess your company. The reporting varies by facility type. Contact us if you want confirmation of what we report about your account and to whom.
Practical strategies
- Repay as soon as funds allow — each repayment immediately lowers your utilisation. For Flex, there is no early repayment charge.
- Draw only what you need — borrowing the maximum available when you only need half increases utilisation without benefit.
- Time drawdowns around expected inflows — if a customer payment is due in five days, it may be better to wait than to draw and repay in a short window.
- Request a limit review at the right time — applying for a higher limit when your utilisation is low and your payment history is clean gives the best outcome.
The payment history factor
Utilisation and payment history are the two main factors in your borrowing record. On-time payments, over time, outweigh a period of high utilisation. If you went through a high-utilisation phase but have since reduced your balance and paid on time, your record improves steadily. There is no instant reset, but consistent responsible use compounds in your favour over months.
See also: Reviewing your facility limit as your business grows, Top-up eligibility — when can you borrow again?, Keeping business borrowing proportionate to revenue.