# A Small Company Guide to Short-Term Business Funding

*Source: https://credicorp.co.uk/business-funding-guide/*

## A small company’s guide to short-term business funding

If you run a small UK limited company, sooner or later cash flow and timing will not line up — a supplier wants paying before your customer pays you, a tool breaks, or stock has to be bought ahead of a busy spell. Short-term business funding exists to bridge those gaps. This plain-English guide explains when it helps, what it should cost, and how to borrow without putting your home at risk.

### When short-term funding is the right call

Borrowing for a few weeks makes sense when the need is real, the amount is modest, and you can already see the money that will repay it. Restocking before a busy period, covering a supplier deposit, or smoothing a known gap are all good reasons. Borrowing to cover an ongoing shortfall, or to repay other borrowing, usually is not — that is a sign the business needs a different conversation, not more credit.

### What it should cost — and the questions to ask

Short-term credit is priced for time and convenience, so always look at the total pounds you will repay, not just a headline rate. Ask three questions of any lender:

- **What is the total cost in pounds, and is it capped?** At Credicorp the total cost of credit is capped at 100% of principal — you never repay more than double.

- **Is there an early-repayment charge?** There should not be. We charge interest only for the days you hold the balance, so clearing early always costs less.

- **Will I have to sign a personal guarantee?** With us, no — see [business loans with no personal guarantee](/business-loans-no-personal-guarantee/).

### Personal guarantees, explained

Many lenders ask a director to personally guarantee the company’s borrowing, which can put personal assets at risk. Credicorp lends to the company, not the director: the signing director is not personally liable and we take no charge over your home or savings.

### The alternatives, honestly

Short-term lending is one tool, not the only one. A business overdraft or credit card may suit very short, very small gaps. For £5,000 or more over a longer term, a mainstream SME lender such as iwoca, Cubefunder or Funding Circle is usually a better fit. A director’s loan — putting your own money in — can work if you check the tax treatment first. And if the pressure is really personal rather than business, free independent help is available from MoneyHelper (moneyhelper.org.uk) and Business Debtline (0800 197 6026).

### How Credicorp fits

We are a direct UK lender for small limited companies: £50 to £500 over 14 to 84 days, or a revolving [Credicorp Flex](/what-we-offer/) facility, with capped pricing and no personal guarantee. If that matches what you need, see [how it works](/how-it-works/) or compare the numbers on our [business loans](/business-loans/) page.

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