# How Credicorp Flex helps companies smooth seasonal cashflow without paying for slow months

*Source: https://credicorp.co.uk/how-credicorp-flex-helps-smooth-cashflow/*

If your business genuinely needs a £20,000 cheque this Friday for a specific named purchase, a one-time loan is the right tool: predictable repayments, a clear end date, a single charge for the borrowing. But many small businesses don’t actually have that shape. They have a £3,000 wobble in February, a £1,500 wobble in May, a quiet July, and a strong autumn. For that shape, paying a lump-sum’s interest on a balance you don’t really need is a waste — and the wrong product for the job. Credicorp Flex is the answer to that shape.

## What Flex actually is

Credicorp Flex is a **revolving credit facility** — essentially a business overdraft with explicit terms instead of bank discretion. We agree a credit limit with you up front (between £500 and £5,000 on the standard tier; more on the higher tier subject to trading history). Within that limit, you can draw, repay, and re-draw as your cashflow demands. Interest accrues daily, but **only on the amount you are actually drawn**. If you draw £1,200, pay it back in three weeks, and don’t draw again for six months — you pay interest on £1,200 for three weeks, and nothing else. The credit limit sits there, unused, until you need it.

## The key difference vs a one-time loan

A one-time loan starts the interest meter on the full principal from drawdown day. If your real need was £1,200 for three weeks but the smallest available loan was £3,000 for 60 days, you would have been paying interest on £1,800 you didn’t need, for 39 days you didn’t need them. Flex eliminates that mismatch — your interest cost matches your actual usage, not the loan structure.

Concretely, at our headline daily rate, a £1,200 Flex drawing held for three weeks costs about £63 in interest. The same £1,200 of usage drawn as a £3,000 / 60-day one-time loan would cost about £450. Same business need; one product fits it, the other doesn’t.

## Quiet months are genuinely quiet

One of the most under-appreciated features of a revolving facility is what happens during the months you don’t draw. There are no monthly fees, no minimum-draw obligations, no “facility maintenance” charges. The agreement sits idle. We do not penalise an inactive facility — in fact, an unused Flex line with a reliable repayment history is exactly the kind of customer we want, and we periodically offer credit-limit increases to those customers without asking.

## The 100% per-drawing cap

The [100% total-cost cap](/support/understanding-the-100-percent-cost-cap/) on Flex applies **per drawing**, not across the whole facility. If you draw £800, the most you ever pay for that drawing is £1,600. If you then draw £400 separately, the cap on that second drawing is set fresh at £800. The mechanism makes the worst case on any single drawing predictable, even if you keep the facility open for years.

## Minimum repayment that scales

The minimum monthly repayment is the greater of 10% of your drawn balance or £20. If your drawn balance falls, your minimum repayment falls with it; if you repay aggressively, you can clear a drawing in weeks rather than the indicative term. Early repayment carries **no penalty** — there’s no fee, no interest clawback, no friction.

## What Flex is NOT for

Honesty about fit matters. Flex is not the right product if:

- You know the exact amount and the exact term you need — a one-time loan will cost you less because the interest-rate offering is slightly tighter at the longer terms.

- You will be drawn to the limit continuously for many months — at that point you are using Flex as a revolving line for a known, ongoing need, which is fine, but worth considering whether a structured loan with predictable monthly repayments would suit you better.

- You need more than the Flex tier ceiling — over the standard tier limit, a one-time loan is the route.

The [business loans page](/business-loans/) has the calculator that compares both products against your specific need. Or, if you’d rather talk it through, [drop us a line](/contact-us/) — we’d rather you take the product that fits than the product that’s bigger.

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Credicorp Limited — UK lender to limited companies (Company No. 16093826). credicorp.co.uk