# How to increase borrowing capacity Practical steps for a UK limited company to improve its borrowing capacity — bank account behaviour, business credit bureau entries, Companies House maintenance and application timing. **Site:** [creditcorp.co.uk/learn/how-to-increase-borrowing-capacity/](https://creditcorp.co.uk/learn/how-to-increase-borrowing-capacity/) 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 - What determines borrowing capacity - Five practical steps to increase what you can borrow - Borrowing capacity questions - Ready to apply? ## Step-by-step guide **Step 1: Improve bank account behaviour** The bank statement is the primary affordability signal. To optimise it: ensure all income flows through the company's business bank account (not a personal account); avoid end-of-month balance crashes (a balance that hits near-zero every month suggests the company is stretched); reduce unnecessary recurring commitments; and if possible, keep a buffer of at least one month's operating costs at month-end. Six months of consistent, balanced data makes a stronger case than three months. **Step 2: Address business credit bureau entries** Pull a business credit report on the company from Experian Business, Equifax Business or Creditsafe. Check for: unsatisfied CCJs (pay them — satisfied or removed is far better); late payment markers (these fade over time with on-time behaviour); incorrect entries (dispute errors with the relevant bureau). The bureau is one of three data sources in the assessment — a clean bureau record removes a potential blocker. **Step 3: Keep Companies House records current** A company with overdue confirmation statements or late accounts is a weaker applicant than one with a clean filing history. File confirmation statements on time. Keep the registered address current. If accounts are due, file them before applying. A company with a full, current filing history supports a faster and more confident assessment. **Step 4: Build a repayment track record** If the company has not borrowed before, consider a small first facility and repay it on time. This adds to the company's bureau payment history. A company with two or three successful, on-time repayments presents a materially better risk profile than a first-time applicant. The capacity to borrow builds from the first repayment. **Step 5: Apply at the right time — when the data looks its best** Timing matters. Apply after a period of consistent income, not immediately after a quiet month. Apply after resolving any outstanding bureau entries. Apply when Companies House filings are current. Apply when the company's bank balance is healthy, not at a low point. The assessment sees the most recent available data — optimising that data window before applying is the most direct route to a higher offer. ## Frequently asked questions **What is borrowing capacity?** Borrowing capacity is the maximum amount a lender assesses the company can afford to borrow and repay given its current financial position. It is not a fixed product limit but a company-specific figure derived from bank statement data, credit bureau data and the Companies House record. A company with higher, more consistent income, a clean bureau record and current Companies House filings will typically be offered more than a company with lower or more variable income. **Does improving the director's personal credit score help?** No. Credicorp assesses the company, not the director personally. There is no personal credit check. A director's personal credit score has no effect on the company's borrowing capacity with Credicorp. The relevant credit file is the company's own business credit file at bureaux such as Experian Business, Equifax Business, Creditsafe and Dun & Bradstreet. **How quickly can borrowing capacity improve?** It depends on what is being addressed. Bank account behaviour improves the data picture over months of trading — three to six months of strong, consistent data can meaningfully shift what an assessment sees. A CCJ that is paid and satisfied shows on the bureau within weeks. Companies House filing lateness can be resolved immediately. An improvement in income level takes the time the business takes to grow. There is no shortcut, but deliberate focus on the right factors produces measurable results. **Does borrowing and repaying on time increase future capacity?** Yes. Each successful draw and repayment adds to the company's payment history on its bureau file. Consistent on-time repayment is one of the most reliable signals of credit quality. A company that has borrowed and repaid twice is a better-evidenced risk than one applying for the first time with no lending history. This is why the first application — even for a modest amount — builds long-term capacity. **Does having too much outstanding credit reduce capacity?** Yes. High credit utilisation — a large proportion of available credit already drawn — is a signal that the company is heavily committed. Reducing outstanding balances before applying can improve the bureau picture and reduce the committed outgoings that feed the affordability assessment. If the company has a Flex balance partially drawn, paying it down before applying for a Bridging Loan may improve the offer. ## 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/)