How exempt business lending works (Article 60B & 60L)

Canary Wharf financial district skyline — London banking and corporate lending — FHL2 — via Wikimedia Commons (CC0)

What “exempt business lending” means

In the UK, most lending to individuals and sole traders is regulated consumer credit under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (“the RAO”). That regime exists to protect consumers, and it brings the disclosure rules, cooling‑off periods and complaint routes that come with FCA consumer‑credit authorisation.

Certain lending to businesses falls outside that consumer‑credit regime. The RAO sets out specific exemptions for credit agreements made with companies and for larger or higher‑value business borrowing. Because Credicorp lends only to incorporated businesses under those exemptions, we are an exempt business lender — we do not carry FCA consumer‑credit permissions, and our facilities are commercial agreements between two businesses, not consumer contracts.

Who we lend to — companies and LLPs only

UK limited companies and LLPs registered at Companies House. We do not lend to individuals, consumers or sole traders.
The borrower is the business. Repayment is assessed against, and made from, company revenue — not a director’s personal finances.
No personal guarantee on standard facilities. Our lending is underwritten on the company’s financials and trading performance. Where a facility genuinely cannot be supported on that basis alone, we tell you before anything is requested.

Article 60B and Article 60L, explained plainly

Two parts of the RAO are the reason business lending like ours sits outside consumer credit:

Article 60B — the regulated activity, and its business carve‑outs

Article 60B defines “entering into a regulated credit agreement” as a regulated activity. Critically, it also carves out agreements that are not regulated consumer credit. Two carve‑outs matter for business borrowers:

Large agreements to companies: a credit agreement where the borrower is not an individual — for example a limited company or LLP — and the amount is more than £25,000, is exempt where the credit is provided wholly or predominantly for the purposes of a business.
Business‑purpose agreements: lending taken out wholly or predominantly for the borrower’s business, backed by a business declaration, sits outside the consumer‑credit rules.

In short: genuine commercial borrowing by a company, for its business, is not consumer credit.

Article 60L — the £25,000 business threshold

Article 60L (with Article 60C) sets the monetary and definitional boundaries — including the £25,000 figure above which business‑purpose lending to a non‑individual is treated as exempt, and the business‑purpose declaration that evidences it. It is the mechanism that separates larger, genuine business finance from the smaller‑value consumer‑protection perimeter.

Together, 60B and 60L are why a company can borrow from us as one business dealing with another, rather than as a protected consumer.

What being exempt changes for you

Exempt status is a difference in framework, not a licence to be opaque. It cuts both ways, and we are direct about both sides:

What you gain

Faster, commercially‑minded decisions — we assess the company, not a consumer file.
Terms tailored to how your business actually trades, rather than a one‑size consumer template.
No personal‑guarantee requirement on standard facilities; your limited liability is respected.

What is different

You are a business customer, so consumer‑credit protections (FCA cooling‑off, the FCA complaints route, the Financial Ombudsman Service for consumers) do not apply.
Agreements are commercial contracts — read the terms as your company would any supplier agreement.
We still apply robust, transparent lending standards and show you your rate and all fees in writing before you commit.

How Credicorp applies it in practice

Eligibility check: we confirm you are a UK limited company or LLP and that the borrowing is for genuine business purposes.
Company‑only underwriting: Companies House verification and business financials drive the decision, not a personal credit score alone.
Written terms up front: your personalised rate, facility size and every fee are set out in the agreement before you sign.
Business declaration: facilities are documented as business‑purpose lending, consistent with the Article 60B/60L exemptions.

Common questions

Is this a personal loan or consumer credit?

No. Every Credicorp facility is exempt business lending to a UK limited company or LLP, made outside FCA consumer‑credit regulation under Articles 60B and 60L of the FSMA RAO 2001. The borrower is the business, not an individual.

Do I lose consumer protections by borrowing this way?

Because the agreement is a commercial contract, consumer‑credit protections such as the FCA cooling‑off period, the FCA consumer‑credit complaints route and consumer access to the Financial Ombudsman Service do not apply. We offset this with plain, written terms and full pricing disclosure before you commit.

Why is £25,000 significant?

Article 60B’s large‑agreement exemption applies to business‑purpose credit above £25,000 to a non‑individual borrower, and Article 60L frames that threshold. Above it, genuine company borrowing for business purposes is treated as exempt rather than as regulated consumer credit.

Will you ask for a personal guarantee?

Not on standard facilities. We underwrite on your company’s financials and trading performance. In the rare case a facility cannot be supported on that basis alone, we discuss it openly with you first — nothing is requested without your knowledge.

Credicorp Limited (Company No. 16093826); ICO registration ZC157682. A related company of CM Beyer Limited; part of the Credicorp group. An exempt business lender under FSMA RAO 2001. This article is general information, not legal or financial advice.