Payroll finance
Short-term finance to cover payroll
Payday is a fixed date your company cannot move. When a late-paying customer or a seasonal dip leaves the wage run short, a one-off short-term loan from Credicorp, £50 to £500, lets your limited company pay its staff in full and on time, then repay over the next few weeks of trading. Interest is 0.25% per day on the principal plus a £5 one-off fee, and the total cost is capped at 100% of the amount borrowed.
UK limited companies and LLPs · No personal guarantee · Decisions most working days
One-off business loan · £50–£500 · 14–84 days · 0.25% per day simple interest + £5 fee · cost capped at 100%.
Why a good company runs short at month-end
Payroll is the one bill you can never stretch. Suppliers will sometimes wait a week; your team has rent and bills of their own, and the law and your own staff rightly expect to be paid in full on the agreed day. The trouble is that wages leave on a fixed date while your income arrives whenever customers choose to pay. A single large invoice settled late, a quiet trading month, or a one-off cost landing the same week as the pay run can leave a profitable, well-run company temporarily short of cleared cash. Bridging that gap is about timing, not whether the business is sound.
- Wages, PAYE, National Insurance and pension contributions all fall due together, on a fixed date.
- One slow-paying customer can tie up the very cash you had earmarked for the pay run.
- Seasonal businesses face quiet months where outgoings keep their rhythm but income does not.
- Missing or part-paying staff damages trust and retention far more than the cost of bridging the gap.
- Funding wages from a director's personal account or card mixes company and personal liability and is expensive.
Helpful guide: covering payroll during a gap
How bridging a pay run works
The mechanics are simple, and the loan is structured around an obligation you already know the size and date of — this month's payroll.
- Borrow the shortfall Apply for a one-off short-term business loan sized to the gap in your wage run. We lend to the company, so there is no personal guarantee for a director to sign.
- Pay your staff on time Run payroll on the agreed date and meet your PAYE, National Insurance and pension obligations alongside it. Your team is paid in full, and your filing and auto-enrolment record stays clean.
- Repay from the next weeks of trading Clear the loan over a fixed short term as your invoices land and next month's receipts come in. The repayment schedule is set out in full before you accept anything.
- Settle early if you can Interest is charged on a simple daily basis on the principal, so paying ahead of schedule reduces the total cost. There is no early-settlement penalty.
What covering a pay run could cost
Say your company is £500 short on this month's pay run and clears it over 30 days as the next month's receipts come in. With 0.25% per day simple interest on the principal and a £5 one-off establishment fee, here is the whole cost — every figure is from our live pricing.
- Wage-run shortfall bridged
- £500
- Term
- 30 days
- One-off establishment fee
- £5
- Interest (simple, on principal)
- £37.50
- Total to repay
- £542.50
- Roughly per week
- £108.50 over 5 payments
Illustration only, not a quote. Use the calculator to price your own wage run and term.
Short-term borrowing is expensive relative to bank lending — only borrow when the cost is justified by paying your team in full and on time. Total cost is capped at 100% of the amount borrowed, so you will never repay more than double. Lending is to the company; the payroll obligation and the loan both sit with the business, and there is no personal guarantee.
Pay your team — and weigh the cost first
Borrowing to cover wages is the right call when the alternative is paying staff late, but it is not the only lever and it is not free. Before you borrow, look at what you can pull forward or hold back without breaking faith with anyone. Chase the invoices that are funding this pay run, ask a key customer whether they can settle early, and check whether a supplier payment can wait a week. If a genuine cashflow squeeze is building, you can also talk to HMRC about a Time to Pay arrangement for the PAYE and NIC due — call them before the deadline, not after. Short-term finance is the right tool when those options fall short and protecting your people and your record matters more than the cost of the bridge.
- Chase the unpaid invoices funding this pay run first — a customer paying early may close the gap on its own.
- See what a supplier or non-urgent cost can wait for before you borrow to cover wages.
- For the PAYE and NIC element, HMRC's Time to Pay can help if you ring before the deadline.
- Pay your staff in full and on time whatever you choose — late wages cost trust you cannot easily rebuild.
Who can apply
- UK limited company or LLP (we lend to the body corporate — not to sole traders, directors or individual employees).
- At least 6 months trading.
- A current UK business bank account that runs your payroll.
- A director identity check (you act as the company's authorised representative, not as a personal borrower).
- No personal guarantee required — the obligation sits with the company.
Payroll finance — questions
Can a limited company borrow to cover its payroll?
Yes. A Credicorp short-term business loan can bridge a wage run for a UK limited company or LLP. You borrow the shortfall, pay your staff and your PAYE, National Insurance and pension obligations on time, and repay the loan over a fixed short term from your next weeks of trading. Lending is to the company, so there is no personal guarantee.
Is this a wage advance or payday loan for my employees?
No. This is a loan to the company so it can meet its own payroll obligation — it is not a salary advance, earned-wage access or payday product for individual employees, and your staff are not borrowers or parties to it. Your team is paid their normal wages, in full, on the normal date; the company simply borrows briefly to fund the run and repays it itself.
Is this regulated consumer credit, and is anyone's personal credit at risk?
No. Credicorp lends only to UK limited companies and LLPs under the body-corporate exemption in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. It is not a regulated consumer credit agreement, the Financial Ombudsman Service and Financial Services Compensation Scheme do not apply, and there is no personal guarantee — the obligation is the company's, not the director's or any employee's.
What does it cost to cover a pay run?
It depends on the shortfall you bridge and how long you take to repay. Interest is 0.25% per day on the principal (simple, not compounding), plus a £5 one-off establishment fee, and the total cost is capped at 100% of the amount borrowed — so you never repay more than double. As a worked example, a £500 wage-run shortfall bridged over 30 days repays £542.50 in total. Paying early reduces the cost.
I am a sole trader who pays staff — can I use this?
Not as a sole trader. Credicorp lends to incorporated businesses only — limited companies and LLPs. If you employ people but trade as a sole trader, you would need to incorporate first before this finance is available to you. Speak to your accountant about whether incorporating is right for your business.
How quickly can the money arrive so I can make payday?
Most decisions come back the same working day. Apply online in a few minutes; if approved, funds are typically released to your business bank account quickly, so you have time to run payroll on the agreed date.
Cover this month's payroll
See exactly what a Credicorp business loan would cost against your wage-run shortfall and term, then apply when it fits. Most decisions come back the same working day, so you can make payday.
Credicorp lends to UK limited companies and LLPs under the body-corporate exemption (Articles 60B and 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001). This is not consumer lending and not a wage advance for individual employees; the worked example above is illustrative and not a personalised quote. The Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.