Most of what we say about lending here is about our one-off business loan: borrow a fixed amount, pay it back over a fixed term, end of story. Credicorp Flex is the other side of the coin. It is a small revolving credit facility for a UK limited company or LLP — a limit you can draw down from when you need to, repay, and then draw down again. This piece explains how that actually works in practice.
What “revolving” means
A revolving facility is closer in shape to a business overdraft than to a traditional loan. Once we approve a limit — say £500 — that limit sits there. You don’t have to use it. When you do draw down, the drawn amount becomes a balance you repay over a short cycle. As you repay, the available limit replenishes, so you can draw again without re-applying. The facility is open-ended until either of us closes it.
That shape suits some situations better than a one-off loan. If a company’s cashflow has lumpy receivables — payments that arrive bunched at month-end while suppliers want paying weekly — a facility you can dip into and repay quickly is often cheaper and less stressful than borrowing a single larger sum.
How a Flex limit gets approved
Our published Flex limit range is £50 to £500, the same as a one-off loan. We approve a limit using the same signals: bank-account history of the company over the last six months, the business credit file, the sector and trading history. There is no personal guarantee from the director, because we lend to the company, not the person.
A Flex limit is shown on a single Pre-Contract Credit Information (Flex KIS) document at sign-up, alongside the Revolving Credit Facility Agreement (RCFA). You see the full daily rate, the fee structure, the cap, and worked examples before you sign anything.
How draws and repayments work
You can draw any amount from £25 up to the available limit at any time, with the cash hitting the company bank account on the next working day (often the same day). Interest only accrues on the drawn balance — undrawn limit costs nothing.
The repayment cycle is short by default — 14 days — with a minimum repayment of 10% of the outstanding balance (with a £20 floor). That means a £200 draw, for example, has a minimum first repayment of £20 fourteen days later. You can repay more, or all of it, whenever you like — there’s no early-repayment penalty. As you repay, the available limit comes back, ready for the next draw.
The cost cap
The total cost of a facility — interest plus fees — is capped at 100% of the principal that’s been drawn, exactly like our one-off loans. We will never charge you more in total than the amount you’ve actually borrowed, however long the facility runs. This is not a regulatory requirement for a body-corporate facility, but it’s a standard we hold to anyway because it stops the cost compounding in a way customers don’t see coming.
When Flex is the right tool, and when it isn’t
Flex fits short, recurring working-capital gaps — a stock top-up, a wholesale invoice that arrives between paydays, a small repair. It is not the right tool for a single, large, planned purchase: for that, a one-off business loan is cheaper and clearer. If you can’t decide which way to go, our compare products page lines the three Credicorp products up side-by-side and explains which one fits which situation.
As ever, we lend to the company, take no personal guarantee, and treat our Consumer Duty framework as a voluntary benchmark even though we sit outside FCA consumer-credit regulation. Full pricing, eligibility and worked examples are on the Flex product page.