™
What a revolving
credit facility is.
Credit on tap, rather than a loan with an end date. Draw what you need, repay it, draw again — and pay interest only on the part you have actually drawn. This guide explains how Credicorp Flex works, and on every facility, the company borrows, never you personally.
A revolving credit facility is a set limit your company can dip into whenever it needs to. The defining feature is in the word "revolving": as you repay what you have drawn, that credit becomes available again, so the same facility can be used over and over.
Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. Its revolving facility is called Credicorp Flex, and it is built for the cash flow that never looks the same two months running. This page is a guide, not an application — when you are ready, applying happens on the lender's own site, credicorp.co.uk.
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 credit card, an overdraft in your own name, a payday loan or sole-trader finance.
Draw, repay, redraw
The whole idea, in three movements.
The limit
A credit limit is set for the company — the most you can have drawn at any one time. The limit is a ceiling, not a balance: it does not cost you anything simply to have it. You only ever pay for credit you actually use.
Drawing
When the company needs funds, it draws against the limit — some of it or all of it. The drawn amount lands in the business account and the drawn balance starts to accrue interest from that point. You can make several drawings over time, up to the limit.
Repaying and redrawing
As the company repays, the drawn balance falls — and the credit you have paid back becomes available to draw again. That is the revolving part: one facility you keep open, dipping in for a peak and paying down in the quiet weeks, without arranging fresh finance each time.
Interest on the drawn balance only
This is the part that catches people out, in a good way. Interest is charged at 0.25% a day on the drawn balance — the money you have actually taken — and not on the limit as a whole. Undrawn credit costs nothing at all.
So a facility can sit ready and unused at no cost, and the moment you repay part of what you have drawn, the daily interest falls to match the lower balance. Paying down quickly is rewarded directly, because the cost tracks the balance day by day.
The 14-day cycle and the minimum payment
The published terms for Credicorp Flex. These are the lender's figures and can change, so always check the live product page before you apply.
- Credit limit: £50 to £500.
- Interest: 0.25% per day on the drawn balance only — undrawn credit costs nothing.
- Establishment fee: a one-time £5, charged on your first drawdown.
- Cost cap: 100% per drawing.
- Term: ongoing, for as long as the facility stays in good standing.
- Cycle: 14 days.
- Minimum each cycle: 10% of the drawn balance, or £20 — whichever is greater.
- Personal guarantee: none.
- 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 catering company, trading as a UK limited company, has a credit limit in place. Its work comes in waves: a busy fortnight of events, then a quiet stretch before the next round of bookings is invoiced and paid. Rather than arranging a new loan each time, it keeps a Flex facility open.
Before a busy run, the company draws part of the limit to buy stock and cover staff. Interest accrues at 0.25% a day on just that drawn amount — not the whole limit. Each 14-day cycle it pays at least the minimum, and when the event invoices are paid it clears most of the balance, which drops the daily interest and frees the credit to draw again for the next run. The undrawn portion, sitting in reserve between busy spells, costs nothing. The facility is with the company, so the director gives no personal guarantee. This is illustrative only — real figures are set by the lender at credicorp.co.uk.
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.
Revolving facility questions
The questions directors ask most. For anything specific to your business, the lender's team are at credicorp.co.uk.
What does "revolving" mean?
It means the credit replenishes as you repay. With a fixed-term loan, once you have repaid it is finished. With a revolving facility, repaying frees the credit up again, so you can draw, repay and redraw within your limit as many times as you need, for as long as the facility stays in good standing.
Do I pay interest on the whole limit?
No. Interest is charged only on the part you have actually drawn — 0.25% a day on the drawn balance. Undrawn credit costs nothing. If your limit is set and you draw none of it, there is no interest to pay.
What is the minimum I have to pay each cycle?
On a 14-day cycle, the minimum payment is 10% of the drawn balance or £20, whichever is greater. You can always pay more, which reduces the drawn balance and therefore the interest that accrues.
How is this different from a bridging loan?
A bridging loan is a single fixed sum for a one-off, time-boxed need, repaid over a fixed term and then closed. A revolving facility stays open and suits uneven, recurring needs — you draw when you need to and repay when you can. If your need is a single known cost, the bridging loan is usually simpler.
Do I give a personal guarantee?
No. The facility 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.
Where to go next
If a single fixed sum suits you better than a facility you keep open, see how business bridging loans work. To understand why the director signs no personal guarantee, read no personal guarantee — what it means. 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.