Credit utilisation is the share of an available facility that a business is actually using at a given time. If a company has a flexible facility and is drawing on much of its available limit, its utilisation is high; if it is using little, utilisation is low.
Why it is worth watching
Utilisation is a useful signal of how a business is managing its finances. Consistently running close to a limit can suggest the facility is being relied on heavily, while a comfortable margin leaves room to handle the unexpected.
- It is a measure of usage, not a charge.
- A sensible margin gives the business breathing room.
- Repaying drawings on a flexible facility lowers utilisation and can free up room.
A practical view
There is no single right level; it depends on the business and the season. What matters is that utilisation reflects a deliberate plan rather than drifting towards a limit because cash is tight. If you find the business is consistently at the edge of a facility, that is a good moment to review the wider picture.
Credicorp lends only to UK limited companies and LLPs for business purposes. You can see how much of your Credicorp Flex or Credicorp Slice facility you are using in your account. If your needs are changing, talk to us, and any change is subject to a fresh affordability view.
See also: What is a credit limit?, What is a business credit score?, What is a credit facility?.