An exempt business lender is a lender that provides finance for genuine business purposes in a way that falls outside the FCA consumer-credit regime. That regime is designed mainly to protect individual consumers. Lending to a company for its business does not work the same way.
What being exempt means in practice
Because this lending sits outside the consumer-credit framework, certain consumer protections do not apply. It is important to understand this before borrowing.
- The Financial Ombudsman Service does not cover this type of business lending.
- FSCS protection does not apply.
- The agreement is a business contract between the lender and the company.
Why it can suit companies
Business lending is built around the realities of how companies operate, with structures and timescales that suit business needs rather than consumer rules. A responsible exempt lender still aims to lend fairly, assess affordability and be clear about cost.
Credicorp is an exempt business lender. We lend only to UK limited companies and LLPs for business purposes, never to individuals or sole traders, and we do not take personal guarantees from directors. The loan is to the company. The rate and terms that apply to your facility are set out in your offer.
See also: What is Article 60B, and why does it matter to you?, What is a business loan agreement?, What does it mean that Credicorp is an exempt business lender?.