# How the running-credit facility differs from a one-time loan

*Source: https://credicorp.co.uk/support/running-credit-vs-one-time-loan/*

If you have borrowed from us before, you will know our live product as a one-time loan: a fixed sum, drawn down once, repaid on a set schedule. We are also introducing a second kind of product — a **running-credit facility** — that works differently. This article explains the difference between the two so you understand what each is for. Before we start, one important note: the running-credit facility is **being introduced** and is not necessarily available to everyone yet, so for what is actually on offer to you right now, see [our business loans page](/business-loans/).

## The one-time loan

Our established product is a short-term **Business Bridging Loan** under a **Business Loan Agreement**. The shape of it is simple: you agree a fixed amount, you receive that whole amount in a **single drawdown** to the company’s bank account, and you repay it over an agreed term — between 14 and 84 days — in weekly or fortnightly instalments. When you have repaid it, the agreement is complete. If you want to borrow again, that is a fresh decision and a new agreement.

This structure suits a specific, one-off need: a known gap to bridge, a single bill to cover, a particular opportunity with a clear cost. You know exactly what you are borrowing, exactly what it will cost, and exactly when it ends — all set out on your Key Information Sheet (KIS) before you sign.

## The running-credit facility

A running-credit facility — governed by a **Revolving Credit Facility Agreement** rather than a Business Loan Agreement — works more like a flexible limit than a single lump. The defining feature is that you can **draw, repay and redraw**:

- You are approved up to an agreed credit **limit**.

- You draw what you need, when you need it, rather than taking the whole amount at once.

- As you repay, that headroom becomes available to draw again, up to the limit.

That makes it suited to recurring or unpredictable short-term needs — where the amount and timing vary — rather than a single fixed requirement. Instead of taking out a new loan each time, you draw against the facility as the need arises.

## The key differences at a glance

Put simply:

- **Drawdown:** one-time loan = a single drawdown of a fixed sum; facility = multiple draws up to a limit.

- **Repayment:** loan = a fixed schedule to a defined end date; facility = you repay and can redraw the available headroom.

- **The contract:** a **Business Loan Agreement** for the one-time loan; a **Revolving Credit Facility Agreement** for the facility.

- **Best for:** loan = a known one-off need; facility = recurring or variable short-term needs.

Because these are genuinely different contracts with different mechanics, it is worth understanding which one you are entering. Our guide to [loan agreement vs facility agreement](/support/loan-agreement-vs-facility-agreement/) compares the two documents directly and is the right place to go before signing either.

## Which is right for you

Neither product is better in the abstract — they answer different questions. If your company has a single, defined need with a clear end, a one-time loan gives you certainty: fixed amount, fixed cost, fixed end date. If your company has a pattern of short, recurring needs and wants flexibility rather than repeated applications, a running-credit facility may fit better, once it is available to you.

Whichever you consider, the same discipline applies: read the KIS, understand the total cost, and only borrow what the company can afford to repay. And because the running-credit facility is still being rolled out, always check [/business-loans/](/business-loans/) for the products, amounts, terms and costs currently offered to your company before you make a decision.

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Credicorp Limited — UK lender to limited companies (Company No. 16093826). credicorp.co.uk