Yes — stating a clear, specific purpose for the funds strengthens your application. It is not a requirement for every product, but it gives underwriters useful context and often reduces the number of follow-up questions we need to ask.
Why purpose matters in underwriting
When we understand what the funds will be used for, we can assess whether the loan is proportionate to the need. A company borrowing to bridge a 60-day invoice payment gap presents a different risk profile to one borrowing to purchase equipment or hire staff. Matching the product to the purpose — for instance, using Credicorp Slice to spread a specific supplier bill, or Credicorp Flex for recurring operational gaps — also tends to produce better outcomes for the borrowing company.
Purposes that work well with each product
- Credicorp Slice: A specific, known invoice or bill — for example, a quarterly software licence, an agency retainer, or a trade supplier payment. Slice spreads the cost over three or four weekly instalments at a flat 6% fee.
- Credicorp Flex: Recurring operational needs where the exact timing and amount vary — payroll bridging, stock purchases, client project costs.
- Business Loan: A defined capital need with a fixed repayment horizon — equipment, fit-out costs, or a single large investment.
What to include when stating your purpose
Keep it factual: name the expenditure, give an approximate figure, and indicate the timeline. A sentence or two is sufficient. Avoid vague descriptions such as "working capital" alone — pair them with specifics, for example "working capital to bridge payment from client X, expected within 45 days."
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What strengthens a Credicorp application?, Can I apply if my company has a short trading history?, How long does a Credicorp approval decision last?