Exempt lending
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 is 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
- 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.