Glossary

What is an obligor?

An obligor is the party that is legally obliged to repay a loan and meet the other terms of the agreement. In everyday language, the obligor is simply the borrower.

Who the obligor is at Credicorp

Credicorp lends only to UK limited companies and LLPs for business purposes. That means the obligor is always the company or LLP itself, as a separate legal entity, and not any individual director, member or shareholder.

  • The agreement is signed on behalf of the company, and the company is responsible for repayments.
  • We do not take personal guarantees, so directors are not personal obligors on the debt.
  • The obligor's obligations are set out in full in your facility agreement.

Why the distinction matters

Because your company is the obligor, the loan sits with the business rather than with you personally. This keeps the borrowing aligned with how a limited company or LLP is structured in law.

Credicorp is an exempt business lender operating outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. If you are unsure who the obligor is on a particular facility, check the parties named on the first page of your agreement or ask our team.

See also: What is a personal guarantee (and why Credicorp does not take one)?, What is a guarantor in business lending?, Who can make a complaint to Credicorp?.

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