# Setting and raising your Credicorp Flex limit responsibly

*Source: https://credicorp.co.uk/setting-and-raising-your-flex-limit/*

One of the most common questions about Credicorp Flex is “how do you decide my limit?”. A second close behind: “how do I get it raised?”. Both deserve a clear answer, because the limit on a revolving facility is the single number that most affects how useful the product is to a small business. This article explains how we set the limit, what we review on the way to a possible increase, and the guardrails that mean we sometimes say no.

## The opening limit

Your starting Flex limit is set from the same affordability assessment that decides a one-time loan: 90 days of business bank statements (open-banking-pulled with your consent, or PDF-uploaded), business credit reference data, and the company’s trading history. We are looking for: stable monthly trading income, predictable outgoings, a reasonable ratio between the facility we’re agreeing and the company’s normal monthly turnover, and no current insolvency flags.

For a first Flex facility, the cap on what we’ll initially agree is the lower of: our policy maximum for the tier, or roughly 30% of the company’s average monthly trading inflow. So a company doing £4,000 a month in net trading inflow would typically see a £1,200 opening limit. The 30% rule is deliberately conservative — most facilities are used for cashflow smoothing, and a limit that genuinely accommodates the wobble without becoming a long-term overdraft replacement is the right shape.

## What triggers a review

We look at three triggers for a possible limit increase:

- **Repayment history.** Six months of clean Flex usage (drawings repaid on or before their minimum-payment dates) flags the account for an automatic review.

- **Trading-inflow growth.** If the open-banking-linked bank statements show sustained trading-inflow growth (greater than 15% over the prior 6 months), the affordability model recalculates a new appropriate limit.

- **Customer request.** You can ask for a review at any time from the portal — “Request a limit review” under the Flex panel. There’s no fee, no commitment, and a request doesn’t oblige you to take any increase we offer.

## The lender-side guardrails

We don’t increase a limit just because a customer asks. The guardrails — applied consistently regardless of who asks — are:

- The new limit must still sit within ~30% of average monthly trading inflow.

- The customer must have at least 6 months of clean repayment history on the existing limit.

- The new limit must not push the company past its overall affordability ratio (Flex + any one-time Credicorp loans + the customer’s other reported business borrowing).

- If the customer carries a [vulnerability flag](/legal/vulnerable-customers/), the request is routed to a manual reviewer who reads the full picture before a decision.

## The borrower-side guardrails (you can use)

You can also CAP your own limit below what we’d offer. From the portal, “Manage Flex” lets you set a personal limit lower than the agreed facility — useful if you want a sensible self-imposed ceiling to prevent the facility being used during a stressful month for purposes that wouldn’t survive a calmer review. The personal cap is a binding limit on drawings, doesn’t affect the underlying agreement, and you can adjust it at any time.

## What “responsible” means here

A Flex facility that is well-matched to your cashflow is a useful tool. A Flex facility that’s habitually drawn to the limit and barely paid down is a different shape — it’s working as a long-term overdraft, and the cost of that, even with our cap, is higher than a structured one-time loan would have been. We watch for that pattern in the data and we sometimes proactively contact a customer whose usage looks like it would suit a different product. That’s the conversation we want to be having, not the one we want to avoid.

For more on the product mechanics, see [Inside Credicorp Flex: drawdowns, repayments, and the math](/support/inside-credicorp-flex-drawdowns-repayments/); for the cap, [Understanding the 100% cost cap](/support/understanding-the-100-percent-cost-cap/); for the underlying agreement, the [Revolving Credit Facility Agreement template](/legal/credit-agreement-template-rc/).

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