Many business lenders ask a company's directors to sign a personal guarantee, which makes them personally liable if the company can't repay. Credicorp doesn't do this. Our lending is to the company itself, and the company is responsible for the agreement.
What this means for directors
If you are a director of a borrowing company, you are not personally signing away your home, savings or other personal assets to back a Credicorp Flex or Credicorp Slice facility. The obligation sits with the limited company or LLP that entered the agreement.
Why we lend this way
We assess businesses on how they trade and how their cash flow can support repayments, rather than relying on a director's personal net worth as a backstop. We think that's a healthier basis for a lending relationship and it keeps the line between business and personal finances clear.
- The borrower is the company, not the individual
- Directors are not asked to underwrite the debt personally
- Our credit decision focuses on the business, not personal assets
Things to keep in mind
Directors still have ordinary legal duties to act properly on behalf of the company, and the company remains fully responsible for repaying what it has borrowed. Because this is exempt business lending, the Financial Ombudsman Service and FSCS do not apply. If you have questions about how an agreement affects your company, speak to us before you sign.
See also: Do you take a personal guarantee from directors?, Why don't you take a personal guarantee from directors?, No personal guarantee: what it means for directors.