In some situations, using Credicorp Flex and a one-time Business Loan alongside each other is a sensible strategy. Here is when it works well and what to watch for.
When using both products makes sense
Different timelines, different instruments
Suppose your company needs to fund a specific one-off purchase — say, £400 of equipment — and separately wants a revolving line of credit for routine cash-flow smoothing. A term loan handles the equipment purchase with a defined repayment schedule; Flex handles the cash-flow fluctuations without a fixed repayment date.
Keeping uses separate
Borrowing for a specific, identifiable purpose with a term loan means the cost is predictable and tied to that purpose. Flex stays clean for variable operational needs. Mixing both into a single Flex facility can obscure the cost of a particular business decision.
What you need to qualify
Each product is assessed separately. Having an existing Flex facility does not automatically qualify you for a term loan (or vice versa), and an outstanding term loan does not prevent you from applying for Flex. Each application is assessed on its own merits — affordability relative to your current obligations (including any existing Credicorp balance) is always considered.
Managing two obligations simultaneously
If you have both a term loan and a Flex balance outstanding, your total repayment obligation combines both. Check your portal regularly to see the combined outstanding and the next payment dates. The direct debit for the term loan is fixed; Flex minimum payments depend on your drawn balance.
Some practical checks:
- Ensure your company's cash flow can comfortably cover both obligations simultaneously before you take on a second product.
- Use the portal's loan summary view to see both facilities together.
- If cash gets tight, contact us early — having two products does not reduce your options for a payment arrangement, but it does mean there are two obligations to address.
Total cost awareness
Interest accrues on both the Flex balance and the term loan balance simultaneously. Download your combined statements monthly and reconcile the total interest cost against what you planned. If the combined cost is higher than expected, repaying the Flex balance first (since it has no early repayment charge) is usually the highest-impact action.
See also: Choosing between Flex and Slice, Using Flex without over-relying on it, Forecasting the cost of borrowing over the term.