Government-backed business lending schemes — such as the Growth Guarantee Scheme (successor to the Recovery Loan Scheme) — can offer attractive pricing because the government partially guarantees the lender against default. That guarantee is not free: it comes with defined eligibility criteria, accredited lenders only, and typically a longer decision timeline. Private lenders such as Credicorp operate outside those schemes and offer a different trade-off.
Eligibility and access
Government-backed schemes are available only through accredited lenders and are subject to the scheme's own eligibility rules — turnover thresholds, trading history requirements, and sector restrictions can rule out early-stage or specialist companies. Credicorp assesses each application on its own merits, without reference to a government scheme's criteria.
Speed and process
Scheme-backed facilities often involve additional underwriting steps to meet the guarantee conditions, which can extend the decision and drawdown timeline to weeks. Credicorp's process is designed to reach a decision quickly — relevant when your company is time-sensitive on a contract, payment, or purchase.
Cost and terms
Government-backed loans frequently carry lower headline rates because the partial guarantee reduces the lender's risk. Credicorp pricing reflects an unguaranteed, short-term product — the total cost may differ. For some companies the speed, simplicity, and absence of scheme conditions outweigh the rate difference; for others, the lower rate of a scheme-backed loan is the priority. It is worth applying to both if time allows.
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: Short-term loan vs long-term loan, Credicorp vs peer-to-peer lending