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Exempt lending describes credit that is not caught by the UK consumer-credit regime. The consumer-credit rules are designed to protect individual borrowers, so when the borrower is a company rather than a person, those rules do not all apply. Lending to a body corporate is the clearest example: it is exempt because it is borrowing by a separate legal entity, not by a consumer.
- What makes lending exempt
- The identity of the borrower — a limited company or LLP rather than an individual.
- The legal basis
- Articles 60B and 60L of the FSMA Regulated Activities Order 2001.
- What it does not mean
- It does not mean unregulated by every law — anti-money-laundering, data-protection and contract law still apply.
Why body-corporate lending is exempt
The consumer-credit regime exists because individuals need protection that companies, as professionally run legal entities, are assumed not to need in the same way. A limited company or an LLP is a separate legal person that enters contracts in its own name. Borrowing by that entity is a commercial arrangement between businesses, and the law treats it accordingly — outside the consumer-credit perimeter.
What still applies to exempt lending
Exempt does not mean lawless. A lender of exempt business credit must still comply with anti-money-laundering rules, identify and screen the businesses it lends to, handle personal data under UK GDPR, and honour the terms of its contracts. Many lenders also choose to apply consumer-style standards — clear pre-contract information, fair treatment, and support in difficulty — voluntarily, because they are good practice.
Exempt lending and Credicorp
Credicorp's lending to UK limited companies and LLPs is exempt lending: it sits outside the consumer-credit regime under Articles 60B and 60L of the FSMA RAO. We are an independent direct lender to UK businesses only — not consumers or sole traders. We apply recognised lending standards voluntarily, including clear pre-contract information and genuine support in difficulty. Credicorp (Company No. 16093826, ICO ZC157682).
See also
- FCA — the regulator whose consumer-credit perimeter this sits outside.
- FSMA RAO — the order containing Articles 60B and 60L.
- Body corporate — the borrower that makes lending exempt.
- Responsible lending — the standards we apply voluntarily.
Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.