Affordability is the heart of every Credicorp decision. Before we make an offer to your limited company or LLP, we need confidence that the business can meet the repayments from its normal trading without straining its day-to-day running.
It is about the company, not the director
Because we lend to the business and take no personal guarantees, affordability is judged on the company's own ability to repay. We look at the money the business generates and the commitments it already has, rather than any individual's finances.
What comfortable looks like
- Repayments that the business can absorb in a typical trading month
- Headroom left over for tax, suppliers, wages and the unexpected
- A term that matches the purpose of the borrowing
Why we take it seriously
Lending more than a business can sustain helps no one. A responsible affordability assessment protects your company's cash position and is why an offer may be smaller, on a different product, or declined even when you would like more.
The repayment shown in your offer reflects what the assessment found to be sustainable. There is no set figure that applies to every business.
See also: What an affordability assessment looks at for a company, What does affordability mean?, Affordability before you apply: weighing it up yourself.