If you hold a Credicorp Flex facility but do not draw from it, no interest accrues — interest is charged only on amounts you have actually drawn. However, your facility agreement may include a standing facility fee or commitment charge for maintaining the limit, regardless of drawdown activity. Review your agreement for the specific terms that apply to your facility.
Why keep an undrawn facility open?
Many businesses keep a Flex facility open as a contingency — the credit line is there if needed, even when cash flow is comfortable. This avoids the delay of applying for finance at short notice during a busy or pressured period. The facility is ready to draw the moment it is needed.
Inactivity and facility reviews
If your facility is unused for an extended period, Credicorp may contact you to confirm you still wish to maintain it. In some cases, a prolonged period of inactivity may lead to a limit review or a request to provide updated financial information. This is to ensure the facility remains appropriately sized for your company's current position.
Reducing or closing an unused facility
If you decide you no longer need the facility — or want to reduce the limit — you can request this through your account at any time, provided there is no outstanding drawn balance. Closing the facility with a zero balance is straightforward and incurs no early-termination penalty in most cases; your agreement will confirm the precise terms.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How is interest charged on Credicorp Flex?, How do I close my Credicorp Flex facility?.