# How business bridging loans work. The simplest of the three Credicorp products: a fixed sum into the company account, repaid over a short fixed term. This guide explains exactly what it is, what it costs, and where it fits — and on every loan, **the company borrows, never you personally**. A bridging loan does one job: it bridges a gap. Money has to go out now — for stock, a deposit, a repair — but the money to cover it is a few weeks away. The loan closes that gap, and you repay it as the expected cash arrives. Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. Its Business Bridging Loan is short-term working capital for incorporated UK businesses, and nothing more complicated than that. This page is a guide, not an application — when you are ready, applying happens on the lender's own site, [credicorp.co.uk](https://credicorp.co.uk/business-loans/). 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. This is **not** a personal loan, a payday loan or sole-trader finance. ## What a bridging loan actually is Strip away the jargon and it is a very ordinary idea. You agree an amount and a term up front. The full sum lands in your business bank account in one go. From that day, interest accrues on the balance still outstanding, and you repay in instalments across the term — weekly or fortnightly, whichever suits the business — until the balance reaches zero. There is no open-ended commitment and nothing to redraw: once it is repaid, it is finished. Because it is a single, fixed sum for a single, known purpose, a bridging loan suits a gap you can put a figure on. You know how much you need, you know roughly when the cash to repay it will arrive, and you want the certainty of a fixed term rather than a facility you keep open. ## The terms, in plain English The published terms for the Business Bridging Loan. These are the lender's figures and can change, so always check the live product page before you apply. - **Amount:** £50 to £500. - **Term:** 14 to 84 days, fixed at the outset. - **Interest:** 0.25% per day on the outstanding principal — as you pay it down, the daily cost falls. - **Establishment fee:** a one-time £5, charged once. - **Cost cap:** the total cost never exceeds 100% of the principal. - **Repayments:** weekly or fortnightly, whichever suits the business. - **Personal guarantee:** none — the agreement is between Credicorp and your company. - **Who can borrow:** UK limited companies, LLPs and PLCs only. Never a sole trader or an individual. ## A worked example An illustration, not a real customer and not a quote — just to show the shape of it. A small homewares company, trading as a UK limited company, lands a confirmed order from a trade buyer. To fulfil it, the company needs to pay a supplier for stock now, but the buyer pays on its own terms a few weeks later. The gap is clear and time-boxed: money out today, money in within the month. The company takes a Business Bridging Loan to cover the stock. The full sum arrives in the business account, the supplier is paid, and the order ships. Interest accrues at 0.25% a day on the balance still outstanding, with a single £5 establishment fee at the start. The company repays in fortnightly instalments across a short fixed term, and because each payment reduces the principal, the daily interest falls as the balance comes down. When the trade buyer pays, the loan is cleared and the matter is closed — no facility left open, no personal guarantee given, and the total cost capped at 100% of what was borrowed. ## When it fits — and when it does not A bridging loan is the right tool for some jobs and the wrong one for others. Knowing the difference saves you money. ### It fits when… - The need is **one-off and time-boxed** — you can name the amount and roughly the date you will repay. - You are funding a **known cost**: a confirmed order's stock, a supplier deposit, an unavoidable repair. - You want the **certainty of a fixed term** rather than a facility you keep open. - The repayment is in sight — a customer payment, a sale, a season's takings — so the bridge has something solid to land on. ### It does not fit when… - The need is **ongoing and uneven** — if you dip in and out month to month, the revolving [Credicorp Flex facility](/learn/what-a-revolving-credit-facility-is/) usually fits better. - You simply want to **spread a single supplier invoice** — that is what [Credicorp Slice](https://credicorp.co.uk/credicorp-slice/) is for. - There is **no clear source of repayment** — a bridge needs something to bridge to. - You are a **sole trader** or want to borrow personally — this is business credit to a body corporate only. [Compare all three products →](https://credicorp.co.uk/compare/) ## One thing about who can borrow Credicorp lends only to bodies corporate — UK limited companies and LLPs. Under Article 60B of the FSMA Regulated Activities Order 2001, lending to a body corporate is not a regulated consumer-credit agreement, so this is business credit rather than consumer credit, and it is not for sole traders or for borrowing in a personal name. The full position is set out on [lending and regulation](/lending-and-regulation/). ## Bridging loan questions The questions directors ask most. For anything specific to your business, the lender's team are at credicorp.co.uk. It is a single, fixed-sum loan to a company, paid into the business bank account and repaid over a short, fixed term — used to bridge a known gap between money going out now and money arriving a little later. Interest is 0.25% a day on the outstanding principal, so as you pay the balance down the daily cost falls. There is a one-time £5 establishment fee. Whatever happens, the total cost is capped at 100% of the amount you borrowed — the lender publishes the live figures, which can change, so always check before you apply. No. The agreement is between Credicorp Limited and your company. There is no personal guarantee, no charge over a home and no personal credit check on a director. The company is the only borrower. When the need is open-ended rather than a one-off — if you dip in and out month to month, a revolving facility usually fits better. It is also not for a single supplier invoice you simply want to spread, which is what Credicorp Slice is for. And it is never for borrowing in a personal name; this is business credit to a body corporate only. This site is the Creditcorp brand front door and does not take applications. Applying, drawing down and managing the account all happen on the operating lender, credicorp.co.uk. ## Where to go next If a fixed-term lump sum is not quite the shape you need, the companion guides cover the alternatives: [what a revolving credit facility is](/learn/what-a-revolving-credit-facility-is/) explains drawing and redrawing as you go, and [no personal guarantee — what it means](/learn/no-personal-guarantee-what-it-means/) unpacks why the company is the only obligor. The full terms for all three products are on the [products page](/products/), and the whole series sits on the [Learn hub](/learn/). [See the Business Bridging Loan at credicorp.co.uk →](https://credicorp.co.uk/business-loans/) ## Ready when you are Applying, drawing down and managing your account all happen on the lender's site, credicorp.co.uk.