Due diligence
Due diligence is the careful set of checks a lender carries out to understand who it is lending to and the risk involved. It spans confirming that a business is genuine and active, identifying its directors and ultimate owners, screening for sanctions and politically exposed persons, and assessing the business's ability to repay. Done well, it protects both the lender and the borrower.
- Identity checks
- Confirming the company or LLP exists, often via Companies House, and verifying its directors.
- Ownership checks
- Identifying ultimate beneficial owners and people with significant control.
- Risk screening
- Sanctions, politically exposed persons, and adverse information.
- Affordability
- Assessing whether the borrowing is sensible for the business.
Standard and enhanced due diligence
Most borrowers are subject to standard due diligence. Where the risk is higher — for example where an owner is a politically exposed person, or the structure is complex — enhanced due diligence applies, meaning deeper checks and closer scrutiny of the source of funds. The level is matched to the risk the relationship presents.
Why due diligence matters to a borrower
Due diligence is not just a hurdle. It is part of responsible lending: a lender that understands a business is better placed to lend appropriately and to support it if difficulty arises. Providing accurate information promptly helps a sound application move quickly, which is why clear, honest answers at the outset are in the borrower's interest too.
Due diligence and Credicorp
Credicorp carries out due diligence on the UK limited companies and LLPs it lends to — identity, ownership and risk checks — as part of meeting its anti-money-laundering obligations and lending responsibly. The published eligibility criteria set out what a business needs to qualify; the internal detail of how decisions are reached is not published. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).
See also
- KYC — knowing and verifying your customer.
- AML — the anti-money-laundering framework.
- Eligibility — the published criteria to borrow.
- Responsible lending — the standard behind the checks.
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.