# Credicorp Flex vs a business overdraft. Both are revolving — a limit you use, repay and use again. But one is a standalone facility you draw into your account, and the other is a buffer that lives on the account itself. Credicorp offers Flex — not the overdraft. Here's how they compare, and when an overdraft is the better tool. On paper, a revolving facility and an overdraft do a similar job: a limit you dip into, clear, and dip into again. The differences are where the line lives, how the cost behaves, how secure the facility is, and whose name the borrowing sits against. Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. To be clear from the outset: **Credicorp offers Credicorp Flex; it does not offer overdrafts.** An overdraft is a feature of a business current account and comes from your bank; Flex is a standalone facility you draw into your account. This page is a guide, not an application — when you're ready, applying happens on the lender's own site, [credicorp.co.uk](https://credicorp.co.uk/). Throughout, the borrower is the **company** — a UK private limited company (Ltd), LLP or PLC — not the director who signs. No personal guarantee, no charge over a home, no personal credit check on a director. These are **not** personal loans, payday loans or sole-trader finance. ## Side by side The Credicorp figures are the lender's published terms and can change — check the live product page before you apply. Overdraft terms vary by bank, so treat that column as a general picture, not a quote. | | Credicorp Flex (Credicorp) | Business overdraft (your bank — not Credicorp) | | --- | --- | --- | | Shape | A standalone revolving facility, drawn to your account | A buffer that sits on the current account | | Limit | £50 – £500 | An arranged limit set by the bank | | How you use it | Draw funds into the company's account, then redraw | Slip below zero on the account when you need to | | Pricing | 0.25% per day on the drawn balance only | Interest on the overdrawn balance, often plus a fee | | Cost cap | 100% per drawing | No standard cap; set by the bank | | Repayment | Min 10% of the drawn balance or £20, whichever is greater, each 14-day cycle | No set schedule; clear it as the balance allows | | Tied to your bank | No — a separate facility | Yes — it's a feature of the account | | Can be withdrawn at short notice | Its own agreement, not a current-account review | Yes — banks can reduce or remove it on review | | Best for | Uneven, recurring cash needs you draw and repay in cycles | An unpredictable buffer against the odd dip into the red | | Personal guarantee | None | Often required by the bank — check your terms | | Borrower | The company | The company (the account holder) | ## Where they really differ They look alike until you ask three questions: where does the line live, how does the cost behave, and how secure is the facility? ### Availability — standalone versus on the account An overdraft's appeal is that it's already there on the current account: no separate facility, you simply slip below zero when the balance runs low. Flex is a standalone line — you draw funds into the account when you need them. That's a touch more deliberate, but it means the facility isn't tied to who you bank with, and it isn't a knob the bank can turn during a current-account review. ### Cost shape — drawn balance versus overdrawn balance Flex charges 0.25% per day on what you've drawn, with the cost per drawing capped at 100%. An overdraft charges on whatever you happen to be overdrawn by, for as long as you're in the red — often with an arrangement or usage fee on top. Both only cost you when you're using them; the difference is that Flex's per-day, capped model is easy to predict, while overdraft charges and fees vary by bank. ### Security and whose name it's against Banks can trim or withdraw an overdraft on review, and overdrafts often carry a director's personal guarantee. Flex is the other way round on both counts: it's a separate facility with its own agreement, and it's to the company with no personal guarantee. If you want a revolving line that won't be quietly trimmed and doesn't lean on your own name, that's the difference that counts. ## When each one wins Neither is better in the abstract. It comes down to whether you want a buffer on the account or a standalone line you draw and repay. ### An overdraft fits better when… You want a buffer that lives on the account, you bank somewhere that will arrange one, and the need is small and unpredictable. For the odd dip into the red, with nothing to draw and nothing owed when you're back in credit, that convenience is hard to beat. ### Credicorp Flex fits better when… You want a revolving line that isn't tied to your bank and can't be trimmed on a current-account review, with a predictable, capped cost on what you draw — and a facility to the company with no personal guarantee. For uneven, recurring needs drawn and repaid in cycles, Flex is built for it. ## The company borrows — not you This is one place the two genuinely part company. A business overdraft frequently comes with a director's personal guarantee attached — the bank wants a name behind the buffer. Credicorp Flex is the other way round: the facility agreement is between Credicorp Limited and your **company**, so the borrowing doesn't add to what's pinned to your own name. - **No personal guarantee** — the company is the borrower, full stop. - **No charge over your home** — your house isn't security for a working facility. - **No personal credit check on a director** — the lender looks at the business, not your own file. - **Bodies corporate only** — UK Ltd, LLP or PLC, never a sole trader or an individual. This is exempt business lending under Article 60B of the FSMA Regulated Activities Order 2001, not consumer credit. The full regulatory position is set out on the group site, [creditcorpgroup.co.uk](https://creditcorpgroup.co.uk/lending-and-regulation/). ## A worked example An illustration, not a real customer — just to show the shape of the choice. A company has uneven cash needs that recur through the month: a small payment run here, a supplier there, with money coming back in a week or two later. The director keeps a modest arranged overdraft on the business account for the genuine month-end wobble, and clears it within days each time, so for that occasional small dip the overdraft does its job well. What the overdraft is less suited to is the recurring draw-and-repay pattern — and the director would rather not lean further on a facility the bank can trim on review, or that carries a personal guarantee. A Credicorp Flex facility fits that pattern: the company draws what it needs into the account, pays only 0.25% per day on the drawn amount, repays over the cycle, and gives no personal guarantee. The two end up complementary — the overdraft for the rare small dip, Flex for the recurring cash cycles. ## Common questions The questions directors ask when weighing the two. For anything specific to your business, the lender's team are at credicorp.co.uk. No. Credicorp offers three products — a Business Bridging Loan, the revolving Credicorp Flex facility and Credicorp Slice — and an overdraft is none of them. An overdraft is a feature of a business current account, so it comes from your bank, not from Credicorp. Flex is the closest thing in spirit: a revolving facility you draw, repay and redraw. But if a buffer that sits on the account itself is what you want, an arranged overdraft from your bank may suit you better, and this page is meant to make that clear. Both are revolving — a limit you use, repay and use again — but they live in different places. Flex is a standalone credit facility: you draw funds into your business bank account and pay 0.25% per day on the drawn balance only, with the cost per drawing capped at 100%. An overdraft sits on your current account and charges interest on whatever you're overdrawn by, often plus an arrangement or usage fee. Flex isn't tied to who you bank with; an overdraft is. When you want a buffer that lives on the account and you already bank somewhere that will arrange one. An overdraft is effortless for the odd small dip — nothing to draw, you simply slip below zero and pay only while you're in the red. If your need is unpredictable and modest, and you value that the buffer is right there on the account, an overdraft is hard to beat for convenience. When you want a revolving facility that isn't tied to your bank and can't be trimmed on a current-account review, and you want the cost to behave predictably — 0.25% per day on what you've drawn, capped per drawing. Flex also stands apart on one point: it's a facility to the company with no personal guarantee, whereas overdrafts often carry a director's guarantee. For uneven, recurring cash needs you draw and repay in cycles, Flex is built for exactly that. Banks can reduce or remove an arranged overdraft on review, sometimes at short notice, because it's a feature of the account they control. Flex is a separate facility with its own agreement, so it doesn't depend on your bank's view of your current account. If having a revolving line that won't be trimmed alongside your banking matters to you, that independence is a real point in Flex's favour — though, as with any facility, the lender's terms apply. Not with Credicorp. The Flex facility agreement is between Credicorp Limited and your company — a UK limited company, LLP or PLC — so there is no personal guarantee, no charge over a home and no personal credit check on a director. Business overdrafts, by contrast, frequently come with a director's personal guarantee attached; worth checking your bank's terms before you assume the two are alike on that point. Neither. This is business credit to a body corporate, not consumer credit, and it is not for sole traders or anyone borrowing in their own name. Under Article 60B of the FSMA Regulated Activities Order 2001, lending to a UK company sits outside the consumer-credit regime. The full position is on the group site, creditcorpgroup.co.uk. More general questions are answered on the [FAQ](/faq/), and the whole journey is on the [how-it-works overview](/how-it-works/). ## Other comparisons If you're weighing a card or a one-off lump sum instead, these may help. - [Credicorp Flex vs a business credit card](/compare/flex-vs-credit-card/) — two revolving routes, side by side. - [Business Bridging Loan vs a business overdraft](/compare/bridging-loan-vs-overdraft/) — a fixed-term lump sum against an on-demand buffer. - [The three Credicorp products, side by side](/compare/the-three-products/) — Bridging Loan vs Flex vs Slice. Or see all three Credicorp products on the [products page](/products/), and compare them on [credicorp.co.uk/compare](https://credicorp.co.uk/compare/). ## Ready when you are If Flex is the right fit, opening the facility, drawing down and managing your account all happen on the lender's site, credicorp.co.uk.