™
What a business loan
agreement covers.
Before you sign anything, it helps to know what each part of a business loan agreement is for. This guide walks through the sections in plain English — who the parties are, the amount, the charges, the term, repayment and what happens in default — and a thread runs through all of it: the company borrows, never you personally.
A loan agreement is simply the written record of a deal: how much is borrowed, what it costs, how and when it is paid back, and what happens if it is not. Once you can name the parts, the document stops being intimidating and starts being a checklist.
Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. This page is a guide, not legal advice and not an application — the binding terms are always the ones in the document you are asked to sign on the lender's own site, credicorp.co.uk. Where figures appear below they are the lender's published product facts, which can change, so check the live pages before you commit.
One point shapes the whole agreement. 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.
The parties — who is actually agreeing
Every agreement opens by naming who is bound by it. Here that is short.
There are two parties: the lender, Credicorp Limited, and the borrower, your company. The company is identified by its registered name and company number, so there is no doubt which legal entity is on the hook. A director signs on the company's behalf because a company can only act through people — but signing as an officer of the company is not the same as borrowing in your own name.
That distinction is the heart of it. Because the company is a separate legal person from its directors, the company is the one that owes the money. The director who signs is not adding their personal liability, and there is no personal guarantee turning a company debt into a personal one. We unpack exactly what that means in no personal guarantee — what it means.
The amount, and what it costs
Two sections that often blur together but do different jobs.
The amount is the principal — the sum the company borrows, before any interest or fees. It is stated as a single figure and, on a fixed-sum loan, paid into the business bank account in one go. With a revolving facility the agreement instead states a limit the company can draw against.
The charges set out the cost of credit: how it is calculated and what you will pay. The shape differs by product, so it is worth knowing all three:
- Business Bridging Loan: interest at 0.25% a day on the outstanding principal, plus a one-time £5 establishment fee.
- Credicorp Flex: interest at 0.25% a day on the drawn balance only, with a £5 fee on the first drawdown and a 14-day repayment cycle.
- Credicorp Slice: a flat 6% fee on the bill, charged once, with no daily interest to track.
The term and the repayment schedule
How long the borrowing lasts, and the rhythm of paying it back.
The term is the length of time over which the borrowing is repaid. A Business Bridging Loan runs over a fixed 14 to 84 days; Slice spreads across three or four instalments over up to eight weeks; Flex is ongoing on a 14-day cycle. Matching the term to the need — short borrowing for a short gap — is the heart of using finance well, which is the subject of short-term vs long-term business finance.
The repayment schedule is the practical side of the term: the dates and amounts due. On a Bridging Loan that is weekly or fortnightly instalments across the fixed term; because interest is charged on the outstanding principal, paying ahead of schedule genuinely reduces what you pay. Early repayment carries no penalty, which we cover in early repayment explained.
Default — and who carries it
The section no one enjoys reading, and exactly the one to read carefully.
What default means
- Missing a payment — not paying what is due when it falls due is the most common trigger.
- Breaking another term — the agreement may list other obligations whose breach counts as default.
- What follows — the agreement sets out the consequences, typically a late fee where one applies (for example Slice's £12) and the lender contacting the company to agree a way forward.
- Read the wording — the binding detail is in your agreement, not on this page. If you are unsure, ask the lender or take advice before signing.
The company as sole obligor
- The company owes the debt — it is the only obligor, so default is a company matter, not a personal one.
- No personal guarantee — a director's own money and home are not pledged against the borrowing.
- No charge over assets — these short-term products are unsecured, with no debenture.
- Bodies corporate only — UK Ltd, LLP or PLC, never a sole trader or an individual.
Why these are business, not consumer, agreements
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 the consumer-credit protections that apply to personal borrowing do not apply here. The full position is set out on lending and regulation and on the group site, creditcorpgroup.co.uk.
Agreement questions
The questions directors ask most. For anything specific to your agreement, the lender's team are at credicorp.co.uk.
Who are the parties to a Credicorp business loan agreement?
Two parties: Credicorp Limited, the lender, and your company — a UK private limited company, LLP or PLC. A director signs on the company's behalf, but the director is not a party in their own name. The company is the borrower and the company alone owes the money.
Does the agreement put my own money at risk?
No. There is no personal guarantee, no charge over a home and no personal credit check on a director. The agreement is between the lender and the company, so the obligation to repay sits with the company. This is one of the defining features of the Credicorp model.
What does the charges section set out?
It states how the cost of credit is worked out and what you will pay. For a Business Bridging Loan that is interest at 0.25% a day on the outstanding principal plus a one-time £5 establishment fee; for Slice a flat 6% fee; for Flex daily interest on the drawn balance plus a first-drawdown fee. Every product caps the total cost at 100% of what was borrowed.
What counts as default?
Broadly, not paying what is due when it falls due, or breaking another term of the agreement. The agreement sets out what happens next — typically a late fee where one applies and the lender contacting the company to put things right. The exact wording is in the agreement you are asked to sign, so read it.
Is this page legal advice?
No. This is general information to help a director understand the shape of a business loan agreement. It is not legal advice and not a substitute for reading your own agreement. The binding terms are the ones in the document the lender asks you to sign at credicorp.co.uk.
Where to go next
Now that the agreement holds no surprises, the companion guides take each part further: no personal guarantee — what it means explains the sole-obligor point, the 100% cost cap unpacks the charges ceiling, and the jargon buster defines any term you meet along the way. The full terms for all three products are on the products page, and the whole series sits on the Learn hub.
Ready when you are
Applying, drawing down and managing your account all happen on the lender's site, credicorp.co.uk.