Affordability is the question of whether your company can comfortably keep up the repayments on a facility, given its income, costs and existing commitments. It is not just about whether you can be approved, but whether the borrowing genuinely suits the business.
What we look at
An affordability view brings together how the company trades and what it already pays out. The aim is a facility that fits, rather than one that stretches the business too thin.
- The pattern and reliability of your income.
- Existing commitments and outgoings.
- How a new repayment would sit alongside everything else.
Why responsible lenders care
Lending that a business cannot sustain helps no one. A facility that is affordable supports growth; one that is not can create pressure that harms the company. Assessing affordability protects both the borrower and the lender.
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not take personal guarantees from directors, and the loan is to the company. The rate and terms shown in your offer reflect our assessment of how a facility fits your business. If your circumstances are difficult, tell us early so we can talk options.
See also: What is a credit limit?, What is restructuring a loan?, What is a promissory note?.