If your limited company needs short-term funding, a high-street bank loan is the obvious first thought — but the two products differ in speed, security requirements, and eligibility criteria in ways that matter to most SMEs.
Speed and process
A bank business loan often involves weeks of underwriting, audited accounts, business plans, and multiple meetings. Credicorp's application is designed for limited companies that need a decision without that overhead. You apply online, connect your accounting data, and receive a credit decision without a lengthy back-and-forth.
Security and personal liability
Most bank SME loans require a director personal guarantee — meaning if the company defaults, your personal assets can be at risk. Credicorp lends only to the limited company or LLP itself. There is no director personal guarantee attached to any Credicorp facility. This is a fundamental structural difference, not a minor detail.
Flexibility and product fit
Banks offer term loans with fixed monthly repayments over years. Credicorp's Business Loan is a short-term fixed-sum product designed for working-capital gaps, seasonal peaks, or one-off costs. If you need a revolving draw-repay-redraw facility instead, Credicorp Flex may suit better — something most bank SME desks do not offer at this scale without significant collateral.
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: Credicorp vs a business overdraft, Credicorp vs a business credit card.