A drawdown is the act of taking money from a facility that has been made available to your business. Once a facility is in place, drawing down is how the funds actually reach the company's account so they can be put to use.
One drawdown or many
How drawdowns work depends on the type of facility.
- On a term facility, you may take the full amount in a single drawdown at the start.
- On a flexible or revolving facility, you may make several drawdowns over time, up to your agreed limit.
- On flexible facilities, repaying earlier drawdowns can free up room to draw again.
Why it matters
Understanding drawdowns helps you manage cost and cash flow, because interest typically accrues on what you have actually drawn rather than the whole limit. Drawing only what the business needs, when it needs it, can keep borrowing efficient.
Credicorp lends only to UK limited companies and LLPs for business purposes. The way drawdowns work on your Credicorp Flex or Credicorp Slice facility is set out in your agreement, and you can manage them in your account. The rate and terms that apply are shown in your offer.
See also: What is a revolving credit facility?, How the running-credit facility differs from a one-time loan and Can my business have more than one loan with you at once?.