Credicorp Flex: What Is a Revolving Business Credit Facility?

A one-off loan is the right tool when you know the exact amount you need and when you'll repay it. But plenty of businesses don't work like that — they have recurring gaps, seasonal spikes, or just want a backstop that's already approved so they're never caught short. That's the job a revolving credit facility is built for.

What is a revolving credit facility?

A revolving credit facility gives you a pre-approved credit limit you can draw from, repay, and draw from again — repeatedly, without a new application each time. You pay interest (or a fee) only on the amount you've drawn, not the full limit. When you repay, the limit refreshes and the money is available again. It sits permanently in the background, ready when you need it.

That's fundamentally different from a term loan, which advances a fixed sum once and closes when repaid. With a revolving facility, the relationship is ongoing.

Credicorp Flex

Credicorp Flex is a revolving credit facility built specifically for UK limited companies. Like Credicorp's one-off short-term loans, it is designed for small amounts, fast decisions, and no personal guarantee — so the director isn't personally liable if the company can't repay.

The key advantage over a single short-term loan is flexibility: you don't need to forecast your exact borrowing need in advance. If a payment timing gap appears, you draw what you need. When receivables land, you repay. The facility stays available for next time.

When Flex beats a one-off loan

• Recurring gaps. If your business regularly has a 2–3 week gap between outgoings and income, reapplying for a new loan each cycle is inefficient. A facility pre-approves the process.
• Unpredictable amounts. If you're not sure whether you'll need £100 or £400, a facility lets you draw exactly what the situation requires.
• Peace of mind. Having an approved facility sitting in reserve means a surprise cost never becomes a crisis — even if you never draw on it.

When a one-off loan is still the better choice

For a single, known, planned outgoing — a specific stock purchase, a one-off supplier payment — a standalone short-term loan is simpler and may be cheaper. There's no facility to manage, and you clear it once and move on. See our short-term business loans guide for a full breakdown.

What to check before you apply

• Confirm the total cost structure: how interest or fees are charged and whether there's a cost for the unused facility.
• Check the repayment mechanics: minimum payments, repayment schedule, and how quickly the limit refreshes.
• Understand the eligibility criteria: trading history, company type, and any checks run on the business.
• Verify the lender is authorised on the FCA's Financial Services Register before drawing any credit.

For the wider landscape of UK business finance options — including term loans, invoice finance and asset finance — see our UK business finance options compared guide.