Can I top up or extend my existing loan?

Two questions we hear regularly:

• "We would like to borrow a bit more — can we add it to the current loan?"
• "Can we spread the current repayments over a longer period to make them smaller?"

Both are new lending decisions, not changes that can be made automatically online. Responsible lending means any further borrowing is assessed for affordability on its own merits, and any extension to the term that increases the total cost of the credit is set out clearly and re-agreed before it takes effect.

How a top-up works

If the company wants to borrow more on top of its existing loan, please tell us using the General Support Enquiry form on our Forms & Requests page and we will explain the next steps. We will look at the company's overall position — its recent cashflow, the existing balance with us and any other borrowing it holds — and decide whether further lending is appropriate.

If a top-up is appropriate, we will issue a fresh Key Information Sheet (KIS) showing the new amount, the new rate, the new payment and the new total payable. Nothing changes on the account until the new Business Loan Agreement is signed.

How a term extension works

Extending the term spreads the repayment over more time. That reduces each payment but, by leaving the balance in place for longer, increases the total cost of the credit across the life of the loan. We will show both figures clearly before any change is made.

If the reason for asking is that the current schedule has become hard to meet, please look at the alternatives in our struggling-to-pay article first — particularly a Hardship Variation or a Payment Arrangement. These are designed for exactly that situation and may produce a better outcome than a longer term.

Things we cannot do

• We cannot consolidate other lenders' debts into the Credicorp loan as part of a top-up.
• We cannot extend the term beyond the limits of the original product.
• We cannot agree a new amount or a new term without going through the proper assessment and disclosure.

Whatever you are weighing up, free, independent help with business money worries is available from Business Debtline — see our article on free debt advice in the UK.