There is a window between receiving a Credicorp offer and drawing down the funds — often a matter of days, but sometimes longer. The offer was made based on your company's position at the time of the assessment. If something significant changes in that window, you should tell us before proceeding, so the decision remains valid for your actual circumstances.
What counts as a material change
Not every development needs to be flagged. The relevant question is whether something has changed that would have affected the assessment, or that changes what the company can comfortably sustain. Examples of changes worth reporting include:
- A director has resigned or a new director has been appointed
- A significant new credit commitment has been taken on — a new finance facility, a large overdraft increase, or similar
- Trading has deteriorated materially since the application — for example, the loss of a major customer or an unexpected operational disruption
- Legal proceedings have been issued against the company that were not disclosed
- The purpose of the borrowing has changed substantially
The spirit of the requirement is honesty: if you would have disclosed something on the original application, or if a reasonable person would say it changes the picture, it is worth mentioning before drawdown.
Why disclosure matters
A Credicorp loan is to the company, and the assessment that underpins the offer is based on the company's position at the time of applying. Proceeding on the basis of a materially different position — whether or not the change was intentional — is not consistent with the Business Loan Agreement you will be signing. We ask applicants to confirm on drawdown that nothing material has changed; that confirmation is part of the agreement.
What to do if something has changed
Contact us before you draw down. Depending on what has changed, we may be able to confirm the offer stands, adjust the terms to fit the new position, or, in some cases, need to withdraw and re-assess. Acting promptly is far better than proceeding with a loan that was assessed against a position that no longer reflects reality. For the broader context of what happens after circumstances change, see what happens if company circumstances change before drawdown.
Day-to-day trading movements
Normal fluctuations in trading — revenue that is a little higher or lower than average, routine supplier payments — do not need to be flagged. The relevant threshold is change that is significant relative to the overall picture the assessment used. Ordinary business activity between application and drawdown is expected and does not require reporting.
Important to know
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not take personal guarantees from directors. As an exempt business lender we sit outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. All terms of the advance are set out in the Business Loan Agreement.
See also: What happens if company circumstances change before drawdown?, What happens after you accept an offer?, How long is a loan offer valid for?.