Before funds are released, your company receives a facility agreement to review and sign electronically. This is the binding contract setting out all commercial and legal terms. Taking a few minutes to verify the key sections prevents misunderstandings later.
Commercial terms to verify
- Facility amount: Confirm this matches what was agreed in your offer letter.
- Facility type: Term loan or Flex revolving — different repayment mechanics apply.
- Term length: The number of months your facility runs for.
- Repayment schedule or credit limit: For term loans, the fixed instalment amount; for Flex, the approved credit limit.
- Annual facility rate: Expressed as a percentage per annum; this drives the finance charge calculation.
- Early repayment clause: Whether a charge applies within the first 28 days and the mechanics of any partial overpayment.
Legal and default provisions
The agreement also covers events of default — such as a missed payment, insolvency proceedings, or a material change in the company's circumstances — and the remedies available to Credicorp in those events. Read these clauses carefully. The agreement will also identify the company account from which direct debits will be collected and specify any requirement to notify Credicorp of director changes, significant asset disposals, or changes in trading status during the facility term.
Getting your questions answered before signing
Credicorp recommends that a company director or the company's accountant reads the agreement before signing. Queries can be submitted through the portal or by email to your relationship contact. Signing constitutes acceptance of all terms by the company — there is no cooling-off period as this is a business-to-business facility.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required as standard. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How does early repayment work?, How do Credicorp loan repayments work?.