Credicorp vs a high-street bank
Credicorp vs a high-street bank business loan
A high-street bank business loan and a Credicorp loan solve different problems. A bank lends larger amounts over years and, pound for pound, that is the cheaper way to borrow — if you qualify and can wait. Credicorp is built for small, short borrowing: £50 to £500 for a few days or weeks, a same-day decision, and no personal guarantee. This page sets the two side by side honestly so you can pick the right one.
Being straight with you: for a large, multi-year loan a bank is usually cheaper per pound than any short-term lender, including us. If that is what your company needs, talk to your bank first. Credicorp earns its place when the amount is small (£50 to £500), the timescale is short (14 to 84 days), or a bank has said no or cannot move quickly enough.
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| What matters | Credicorp | High-street bank loan |
|---|---|---|
| Who it is for | UK limited companies and LLPs that need a small amount, fast. | Established UK businesses that meet the bank's trading-history and credit criteria. |
| Typical amount | Small — built for short bursts of working capital. | Larger — usually starts in the thousands and runs into six figures. |
| Typical term | Days to a few weeks. You can repay early and pay less. | Months to several years on a fixed repayment schedule. |
| Cost per pound | Higher per pound — the trade-off for size and speed. Total cost is capped. | Lower per pound over a long term — generally the cheapest route if you qualify. |
| Cyflymder penderfyniad | Same-day decision; funds quickly once approved. | Days to weeks — underwriting, paperwork and sometimes a branch appointment. |
| Gwarant bersonol | No personal guarantee. We lend to the company, not to you personally. | Often required — directors may have to guarantee the debt personally. |
| Security / collateral | Unsecured. No charge over business or personal assets. | May be unsecured or secured; larger facilities are frequently secured. |
| Early repayment | Pay early and the interest you save comes straight off the total. | Some loans charge an early-repayment fee — check the agreement. |
| Regulatory cover | Body-corporate lending, outside FCA consumer credit. No FOS or FSCS. | Varies by product; small-business lending is largely outside FCA consumer-credit too. |
Indicative cost per £100 borrowed, per 30 days
Indicative cost per £100 borrowed, per 30 days (illustrative — not a quote)
How each one is priced
| Option | How it is priced (provider’s own words) | Typical amount & term |
|---|---|---|
| Credicorp Small, short borrowing for UK limited companies and LLPs — no personal guarantee. | 0.25% interest per day · £5 one-off fee · total cost capped at 100% of the amount borrowed Interest only; the £5 fee is one-off, not per 30 days. Repaying early reduces the total. | £50–£500 · 14–84 days |
| High-street bank — small business loan A representative unsecured small-business loan from a major UK bank. | 5.25% APR representative (the rate you are offered varies by amount and circumstances) The bank's own representative example uses an 8.2% fixed rate on £7,500, so the rate you are offered may be higher than the 5.25% headline. A bank loan is cheaper per pound over a long term, but is larger, slower and may need a guarantee. | £1,000–£100,000 · 1–7 years |
For a plain-English breakdown of what a business loan costs, and why, see the Help Centre.
When a bank loan is the better choice
- You need a large amount — more than short-term lending is designed for.
- You can repay over months or years rather than days or weeks.
- Lowest possible cost per pound matters more than speed, and you have time to apply.
- Your company meets the bank's trading-history, turnover and credit requirements.
- You are funding a long-lived asset (premises, vehicles, equipment) that pays back slowly.
When Credicorp fits better
- You need a small amount to bridge a short, specific gap — a supplier, a VAT bill, stock.
- You need a decision today, not in a fortnight.
- A bank has declined you, or cannot move quickly enough for the deadline you are facing.
- You will not give a personal guarantee, and want the debt to sit with the company.
- You want to borrow briefly and clear it fast, paying less by repaying early.
How to read the comparison
- APR annualises cost as if you borrow for a year. For a few days or weeks it makes a small actual cost look enormous, so it is the wrong lens for short-term credit.
- We normalise to "cost per £100 borrowed, per 30 days" so a small, short loan and a large, multi-year one can sit side by side. On that basis short-term credit looks dearer — because it is, per pound — but you are also borrowing far less, for far less time. Treat the figure as illustrative, not a quote.
- A bank loan is a long-term commitment with a fixed schedule; a Credicorp loan is short and you can clear it early. Match the product to how long you actually need the money.
- Always check the provider’s current rate and terms before deciding — they change.
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Is a Credicorp loan cheaper than a bank business loan?
Usually no — and we will not pretend otherwise. For a large loan repaid over several years, a high-street bank is normally the cheapest option per pound borrowed, and we recommend that route if you qualify and can wait. Credicorp is a short-term product for small amounts over days or weeks; you borrow far less, for far less time, so the cost per pound is higher but the total cost is small and capped. Use the calculator to see the exact figure for what you actually need.
Why choose Credicorp over a bank, then?
Speed, eligibility and simplicity. We give a same-day decision, we lend to the company with no personal guarantee, and we are built for the small, short borrowing a bank term loan is not designed for. If a bank has declined you, is too slow for a deadline, or wants a personal guarantee you will not give, that is where we fit.
Do I need a personal guarantee like a bank often asks for?
No. Credicorp lends to your UK limited company or LLP, not to you as an individual, and we do not take a personal guarantee from directors. Many bank small-business loans do ask a director to guarantee the debt personally — always check the bank's terms before you sign.
Can a sole trader use Credicorp instead of a bank?
No. Credicorp only lends to UK limited companies and limited liability partnerships, because our lending sits under the body-corporate exemption rather than FCA consumer credit. A sole trader would need to incorporate as a limited company first. A bank, by contrast, can lend to sole traders under consumer-credit or business rules — so if you trade as an individual, the bank route may suit you.
How fast is a Credicorp decision compared with a bank?
Credicorp gives a same-day decision and releases funds quickly once you are approved. A bank business loan typically takes days to weeks because of underwriting, documentation and sometimes an appointment. If your deadline is tight, that speed difference is often the deciding factor.
Are Credicorp loans covered by the Financial Ombudsman or FSCS like a bank?
No. Because Credicorp lends only to incorporated businesses under the body-corporate exemption (Articles 60B and 60L FSMA RAO 2001), this is not regulated consumer credit, and the Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Much bank small-business lending sits outside those consumer protections too — but you should confirm the position for any product you are comparing.
Sources
The bank figure is quoted from the provider's own website, accessed 6 June 2026. Figures change — please verify with the provider.
- High-street bank — small business loan: NatWest — Small Business Loan — "Representative APR 5.25%"; representative example £7,500 at 8.2% fixed, total repayable £8,253; loans £1,000–£100,000; terms 1–7 years. https://www.natwest.com/business/loans-and-finance/small-business-loan.html
If a small, short-term loan with a same-day decision and no personal guarantee is what fits, see exactly what a Credicorp loan would cost — or check if your company is eligible before you apply.
Apply for a business loan Cyfrifo eich cost
Prefer to read more first? How our business loans work, check your eligibility, neu compare us with other lenders.
Credicorp Limited only lends to UK limited companies and limited liability partnerships. Loans provided by Credicorp Limited are not regulated credit agreements within the meaning of Article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, and Credicorp Limited is not authorised or regulated by the Financial Conduct Authority for consumer credit lending. The comparison above is illustrative and not a personalised quote; the Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.