Before comparing rates and terms, it pays to be clear about what the money is for. Finance that suits day-to-day working capital is not always the right fit for a long-term growth investment, and choosing the wrong shape can cost you whatever the rate looks like.
Working capital
Working-capital needs are short-term and recurring: covering payroll in a quiet month, buying stock before a busy season, or bridging the gap between paying suppliers and getting paid. These suit flexible, shorter facilities that you can draw on and repay as cash comes in.
Growth finance
Growth needs are larger and longer: opening a second site, a major piece of equipment, or a step change in capacity. These suit finance with a defined amount and term that matches the period over which the investment is expected to pay back.
Matching the two
- Short, recurring need? Lean towards a flexible facility.
- Large, one-off investment? Lean towards a structured term.
- Avoid funding a long-term asset with short-term money, or vice versa.
How Credicorp can help
Credicorp Flex and Credicorp Slice are designed for different shapes of need by UK limited companies and LLPs. Being honest about the purpose first makes every later comparison clearer. The amount, term and cost that apply to you appear in your offer.
See also: Asset finance vs a business loan: how to compare them, Short-term loan vs revolving credit facility: a decision guide, Credicorp Flex vs Credicorp Slice: how to choose.