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Term date approaching:
what happens next.
When a Credicorp Business Bridging Loan reaches its agreed term date, the full outstanding amount is due. This guide explains the repayment process, what options exist if the company cannot repay in full, and why early communication matters.
What happens on the repayment date
The Credicorp Business Bridging Loan is a fixed-term product. At the point of application, the company agrees a repayment date — up to 84 days from drawdown. On that date, the full outstanding balance is due: the principal plus all accrued interest and fees.
Credicorp will typically attempt to collect from the company's nominated bank account. If the funds are there, the account closes and the company receives confirmation. If the funds are not there, the company is in default from that day.
If the company repays early — any day before the agreed term date — interest stops accruing from that day. There is no early repayment penalty. The company only pays for the days it actually holds the balance. Read early repayment explained for more detail.
What if the company cannot repay in full?
Contact Credicorp as early as possible — before the term date.
Lenders prefer early communication over a missed repayment with no notice. If the company knows before the term date that it will not be able to repay in full, reaching out proactively gives the most options:
- Extension. An agreed extension of the term to a later date, allowing more time for the repayment event to occur. This is at Credicorp's discretion and is not guaranteed, but it is an option available on a case-by-case basis.
- Partial repayment. If the company can repay some but not all of the balance, a partial payment reduces the outstanding principal and the continuing daily interest accrual.
- Restructured schedule. In some cases, a revised repayment plan can be agreed. This depends on the company's position and the lender's assessment at the time.
None of these options is guaranteed. The earlier the company makes contact, the more options are available. Waiting until after the default removes most of them.
The consequences of not repaying
If the company misses the repayment date without communication or resolution, the following apply:
- Daily interest continues to accrue. The 0.25%/day rate continues on the outstanding balance for every day the balance remains unpaid — up to the 100% total cost cap.
- The company is in formal default. The lender may begin formal recovery proceedings. This can include engaging debt recovery services.
- A County Court Judgement (CCJ) may be registered. If the lender takes legal action to recover the debt and wins, a CCJ is registered against the company at Companies House. This appears on the company's credit record for six years and makes future borrowing from any lender significantly harder.
- The director is not personally affected. There is no personal guarantee on Credicorp products. The CCJ is against the company, not the individual director. The director's personal credit file and personal assets are not involved.
The 100% total cost cap applies throughout — total charges can never exceed the original borrowed amount.
How to handle repayment at term end
- Plan repayment well before the term date. Confirm the exact repayment amount (principal + accrued interest to the term date) in the loan documentation. Ensure the funds will be in the nominated account before the date. Repaying early is always an option and saves the daily interest for those days.
- If repayment will not be possible, contact Credicorp early. Contact credicorp.co.uk before the term date — not after. Early communication gives the most options: extension, partial repayment, restructured schedule. The further in advance the contact is made, the wider the options available.
- Understand the consequences before deciding not to act. Missing the repayment date without communication leads to formal default, continuing daily interest, and potentially a CCJ against the company. The director is not personally liable, but the company's future borrowing capacity is significantly affected.
- After repayment, confirm closure and next steps. Once the balance is zero, confirm closure with Credicorp and retain the confirmation. A company that has borrowed and repaid cleanly can apply again at credicorp.co.uk when the next need arises — a clean repayment history strengthens future applications.
Term end questions
What happens on the repayment date of a Bridging Loan?
On the agreed repayment date, the outstanding principal plus any accrued interest and fees is due in full. Credicorp will typically attempt to collect the repayment from the company's nominated account. If the full amount is in the account, the facility closes — confirmation is issued and the balance clears to zero. The company is no longer a borrower and can apply for a new facility if needed.
What if the company cannot repay in full on the term date?
Contact Credicorp at credicorp.co.uk as soon as possible — before the term date if possible. Lenders generally prefer early communication over a missed repayment with no notice. Options may include a short extension of the term, a restructured repayment plan, or partial repayment with a revised schedule for the remainder. What is available depends on the company's position at the time. Contacting the lender proactively is always better than missing the date without warning.
Can a Bridging Loan be extended?
Extension is at the lender's discretion and is assessed at the time of the request. It is not guaranteed, but it is an option that Credicorp can consider. A company that has been communicating well throughout the term, has a clear reason for needing more time, and has a credible plan for repayment is in a better position to request an extension than one that misses the date without contact. Contact Credicorp directly at credicorp.co.uk.
What are the consequences of not repaying on time?
Failing to repay by the agreed date is a default. Interest continues to accrue on the outstanding balance. The lender may take steps to enforce the debt — including registering a County Court Judgement (CCJ) against the company, which would appear on the company's credit record for six years. This does not affect the director personally (there is no personal guarantee on Credicorp products), but it affects the company's future ability to borrow from any lender.
Will the 100% cost cap still apply if the loan runs over its term date?
The 100% total cost cap applies to the total charges on the facility — the interest and fees can never exceed 100% of the amount originally borrowed, regardless of how long the loan runs. At the standard Credicorp daily rate of 0.25%/day, this ceiling is not reached until around 400 days. If a loan runs over term because of a default situation, the cap continues to apply — the company will never owe more in total charges than the original principal.
Related guides
For early repayment and how paying back sooner saves interest, read early repayment explained. For what happens after a missed repayment in full, read what happens if you miss a repayment. For the 100% total cost cap, read the 100% cost cap. All the guides are on the Learn hub.
If the term date is approaching — plan now.
Repay on time, repay early, or contact Credicorp early. Those are the three good outcomes.