A business loan agreement is the contract between a lender and a company that sets out the full terms of the borrowing. It is the document that governs the relationship, so it is worth reading carefully before you accept anything.
What it typically covers
- The amount, rate and term that apply to your facility.
- How and when repayments are made.
- What happens if you repay early or fall behind.
- Any conditions or terms attached to the facility.
Why it matters
Once accepted, the agreement is binding on the company, so it should reflect your understanding of the deal. If a term surprises you, that is a reason to ask before signing, not after. A clear agreement protects both sides by removing doubt about what was agreed.
Because Credicorp is an exempt business lender, the agreement is a business contract. This type of lending sits outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply.
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not take personal guarantees from directors; the agreement is with the company. If anything in your agreement is unclear, ask our team before you accept.
See also: Can I get a copy of my Business Loan Agreement?, What is accrued interest?, How to read your offer document before you accept.