Creditcorp offers two main facility structures for UK limited companies: a fixed-term loan and a Flex revolving credit facility. Both are designed for business use only. Choosing the right structure from the outset means your repayment pattern aligns with how your company actually generates and uses cash.
When a term loan is the better fit
A term loan works best when your company has a specific, bounded capital need — buying equipment, funding a contract deposit, covering a planned expansion cost, or bridging a known receivable. You draw the full amount once, repay in fixed monthly instalments, and the facility closes at the end of the term. The predictability of a fixed instalment makes budgeting straightforward. As an illustrative example (not a quote), a company purchasing £30,000 of plant and machinery might take a 12-month term loan and know exactly what its monthly commitment is from day one.
When Flex is the better fit
Flex suits companies with recurring, variable working-capital needs: funding stock cycles, covering payroll ahead of a large customer payment, or smoothing seasonal cash gaps. Because you only pay finance charges on what you have drawn, a company that repays quickly after each use pays significantly less than one that keeps a full balance outstanding. Flex is also well suited to companies that want a safety net available but do not need to draw immediately.
Can you switch between them?
You cannot convert an existing term loan into a Flex facility mid-term. However, once a term loan is repaid, your company can apply for a Flex facility (or vice versa) on the strength of your repayment history. Companies that have managed a term loan well tend to receive faster decisions on subsequent applications of either type.
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: What is Creditcorp Flex and how does it accrue?, How do Creditcorp loan repayments work?.