Credicorp lends only to UK limited companies and LLPs for business purposes. Lending of this kind, to businesses rather than to consumers, generally falls outside the scope of the Financial Conduct Authority's consumer-credit regulation. That's what people mean when they describe us as an exempt business lender.
Why business lending is treated differently
Consumer-credit rules exist primarily to protect individuals borrowing for personal reasons. A limited company borrowing to fund its trading activity is in a different position, and the law recognises that. Because of this, certain consumer protections are not part of a business-to-business agreement.
What this means in practice
- You will not have access to the Financial Ombudsman Service for these agreements
- The Financial Services Compensation Scheme (FSCS) does not apply
- Consumer-credit rights such as cooling-off periods designed for individuals do not apply in the same way
What still protects you
This doesn't mean there are no standards. We aim to lend responsibly, set out terms clearly in your offer, and treat customers fairly, including businesses that run into difficulty. Your agreement, our complaints process and ordinary contract and data-protection law all still apply. If anything in your agreement is unclear, ask us before you sign.
See also: What kind of lender is Credicorp?, Does Credicorp lend to sole traders or individuals?, Lending to limited companies across the UK.