™
What is a
facility limit?
Every credit product has a limit — the maximum amount that can be outstanding at any one time. This guide explains what sets that limit, how it works differently across lump-sum and revolving products, and what a company can do if the limit is lower than expected. The company borrows, never you personally.
What a facility limit is and how it works
A facility limit is the maximum amount that can be outstanding under a credit product at any one time. It is company-specific, set during the assessment, and reflects what the lender judges the company can afford to service given its current financial position.
For a Business Bridging Loan, the limit is the amount approved for that specific facility — the company draws the full amount on day one and repays it at term. It is a single transaction, not a revolving one.
For a revolving facility like Credicorp Flex, the limit is the maximum that can be outstanding at any moment. The company can draw, repay, and draw again, but the total outstanding balance can never exceed the limit. When the company repays £X, the available balance immediately increases by £X.
What determines the limit
The limit is not a fixed product maximum — it is a company-specific figure set by the assessment. The main factors are:
- Income level and pattern — shown by the company bank statements. Consistent income at a level that can clearly service the repayment supports a higher limit.
- Existing commitments — other regular outgoings, existing credit facilities, and balance behaviour at month-end all feed into what the assessment determines is serviceable.
- Bureau data — the company’s payment history, CCJs and existing credit utilisation as seen by business credit bureaux.
- Companies House record — a company with current filings, a clean record and a full trading history supports a higher limit than one with late filings or a very short history.
- Amount applied for — the assessment checks whether the specific amount applied for is affordable. Applying for a sensible amount, not an aspirational one, tends to result in cleaner decisions.
Five steps to manage and build your facility limit
- Apply for the amount the company needs. Not the maximum you might get — the amount that matches the specific need. A focused, evidenced need supports a clean assessment.
- Understand what your data supports. Review the last three to six months of bank statements before applying. Consistent income, stable balances and limited committed outgoings all support a higher limit.
- If the offer is lower than expected, ask why. Credicorp’s team can usually identify what data factor drove the limit. It may be addressable — a bureau entry that can be explained, additional bank data that completes the picture.
- Build the track record for future increases. Draw and repay on time. Keep Companies House filings current. A positive repayment history improves the bureau record and supports higher limits on subsequent applications.
- For Flex, manage available balance actively. Repay as soon as bridged cash arrives. Daily interest accrues on everything drawn. The faster the repayment, the lower the cost and the sooner the balance is available again.
Facility limit questions
What is a facility limit?
A facility limit is the maximum amount a company can borrow under a particular credit product at any one time. For a Business Bridging Loan, it is the maximum amount that can be drawn under a single facility (the approved lump sum). For a revolving facility like Credicorp Flex, it is the maximum outstanding balance — the company can draw up to the limit, repay, and redraw, as long as the outstanding balance does not exceed the limit at any time.
What determines the facility limit?
The facility limit is set during the assessment based on what the lender judges the company can afford to service — principally from the company's bank statement data (income level, balance consistency, existing commitments) and the bureau data (payment history, existing credit). It is not a fixed product maximum but a company-specific figure derived from the assessment. A company with higher, more consistent income will typically be offered a higher limit than a company with lower or more variable income.
Can the facility limit increase over time?
Typically yes, though this depends on the lender's own criteria. As a company demonstrates a track record of drawing and repaying, its bureau data improves and its bank statement data provides more evidence of affordability. Lenders may offer limit increases based on this improved profile, either proactively or when the company applies. At the time of any new application, the assessment uses the most recent available data, so an improved trading position can result in a higher offer.
What happens if I need to borrow more than the facility limit?
If the amount you need exceeds the facility limit offered, you have a few options: (1) check whether the lender can reassess the limit based on more recent or complete data; (2) apply at a different time when the company's trading data is stronger; (3) consider whether the need can be split across a shorter period so a smaller amount still delivers the required outcome. Credicorp cannot point to other specific lenders, but there are other business lenders in the market.
Does the facility limit on a revolving product replenish after repayment?
Yes. For a revolving product like Credicorp Flex, the available balance replenishes as the company repays. If the limit is £20,000 and the company has £12,000 drawn, the available balance is £8,000. When the company repays £5,000, the available balance becomes £13,000. The total outstanding balance can never exceed the set limit, but within that, the company can draw and repay freely.
Ready to apply?
Find out what limit the assessment supports for your company. Apply at the lender’s own site.