This is one of the most common worries directors raise, so it is worth being clear. Credicorp lends to your limited company or LLP for business purposes. The borrower is the company, not you as an individual.
We do not take personal guarantees
We do not ask directors to sign personal guarantees on Credicorp Flex or Credicorp Slice. That means the obligation to repay sits with the company. If the company falls into arrears, we pursue the company under the terms of the agreement, not the directors' personal assets.
What this does not change
Directors still have their normal legal duties to the company, including duties that apply when a company is in financial difficulty. Those duties come from company law, not from us. If your company is genuinely struggling, taking proper advice on those duties is sensible.
Your company's record, not your personal credit file
- The agreement and any arrears relate to the company.
- We do not report directors' personal credit files for company borrowing with us.
- How a missed payment is recorded against the company depends on the agreement and applicable reporting.
Because this lending sits outside the FCA consumer-credit regime, the Financial Ombudsman Service and FSCS protection do not apply. If you are unsure how arrears affect your company specifically, contact us and we will talk it through.
See also: How difficulty support differs for business borrowers versus consumers, Does the Breathing Space scheme apply to my business loan?, What happens if a director resigns while the company is in arrears?.