# How Credicorp compares to a business overdraft A plain-English comparison between a Credicorp short-term business facility and a bank business overdraft — eligibility, speed, cost and revolving access for UK limited companies. **Site:** [creditcorp.co.uk/learn/how-credicorp-compares-to-a-business-overdraft/](https://creditcorp.co.uk/learn/how-credicorp-compares-to-a-business-overdraft/) Creditcorp is the growing name for the Credicorp group. Credicorp Limited is the lender behind it — short-term working capital for incorporated UK businesses. No personal guarantee on any product. This page is a guide; applications go to [credicorp.co.uk](https://credicorp.co.uk/). ## Contents - The comparison, side by side - When each option fits - The personal guarantee question - Five steps to decide which to use - Overdraft vs Credicorp questions - Related guides - Ready to apply? ## Step-by-step guide **Step 1: Check whether your company already has a bank overdraft available** If you have a business current account with a UK bank, check whether an overdraft facility is already attached. Log in to business banking or call the relationship manager. If an overdraft exists and the cost is lower than the alternative, it may be the right first choice for a very short gap. **Step 2: If no overdraft exists, identify how quickly you need the funds** A new bank overdraft application typically takes days to weeks and requires a pre-existing banking relationship. If you need funds today or within 24–48 hours, a Credicorp facility is the faster route — the assessment is automated and funding can happen same working day on approval. **Step 3: Compare the total cost for your specific term** For a bank overdraft, add together: the arrangement fee, annual review fee, monthly usage fee, and interest on the drawn balance for the period you expect to use it. For a Credicorp Bridging Loan, multiply the principal by 0.25% by the number of days, add £5, and apply the 100% cap. For short defined-term use, compare the two totals. **Step 4: Check whether a personal guarantee is required** Ask the bank explicitly whether the overdraft requires a personal guarantee from a director. If it does, and you want to keep the company's obligations separate from your personal finances, a Credicorp facility — which carries no personal guarantee — may be the cleaner choice. **Step 5: Choose based on need shape, speed, cost and personal exposure** If you have an existing low-cost bank overdraft with no personal guarantee and the gap is small and very short, the overdraft may win on cost. If speed matters, there's no overdraft in place, the cost is comparable, or a personal guarantee is a concern, apply at credicorp.co.uk. ## Frequently asked questions **What is the main difference between a business overdraft and a Credicorp facility?** A bank business overdraft is a revolving arrangement tied to a current account, usually requiring a pre-existing banking relationship and sometimes a personal guarantee from the director. A Credicorp facility is standalone — no existing banking relationship is needed, no personal guarantee is taken, and no charge over a director's property is required. The decision is based on the company's financial picture, not on how long it has banked with a particular lender. **Can any UK limited company get a business overdraft?** Not automatically. Most banks require the company to hold a business current account with them — often for six months or more — before offering an overdraft. They may also require a personal guarantee from the director, and newer companies are frequently declined. Credicorp considers applications from companies with active UK business bank accounts without requiring a banking relationship with Credicorp itself. **Is a business overdraft cheaper than a Credicorp loan?** Overdraft pricing varies by bank and arrangement. A bank overdraft often charges an arrangement fee (typically 1–2% of the facility), an annual review fee, and a monthly usage fee, plus an interest rate on the balance drawn. Total cost depends on how the facility is used. A Credicorp Bridging Loan charges 0.25% per day with a £5 establishment fee, capped at 100% of the principal. For a short, defined-term need (a few weeks), the Credicorp structure can be cheaper than carrying an overdraft facility with annual fees. **Does a business overdraft take a personal guarantee?** Many banks do require a personal guarantee for a business overdraft, particularly for smaller companies and newer businesses. Some do not, depending on the bank's policy and the company's profile. Credicorp does not take a personal guarantee on any of its products — the lending is to the company only, and no director is personally liable if the company fails to repay. **How quickly can Credicorp pay out compared to a bank overdraft?** A bank business overdraft involves an application and underwriting process that may take days to weeks, plus the requirement for an existing account. Once approved, an overdraft is available on demand. A Credicorp facility can typically be approved and funded same working day after application — there is no prior banking relationship required and the assessment uses Open Banking data and business credit bureau checks rather than a manual credit file review. ## About Creditcorp / Credicorp Credicorp Limited is a UK short-term business lender. Products: Business Bridging Loan (14–84 days, 0.25%/day), Credicorp Flex (revolving credit, 0.25%/day on drawn balance), Credicorp Slice (invoice-backed, flat fee). Incorporated UK companies and LLPs only. No personal guarantee. No debenture. Same-day decisions. Total charges capped at 100% of principal. - [Apply or get a quote](https://credicorp.co.uk/) - [Products overview](https://credicorp.co.uk/products/) - [Eligibility](https://credicorp.co.uk/eligibility/) - [All learn guides](https://creditcorp.co.uk/learn/)