Creditcorp Flex is a revolving credit facility: you draw funds, repay them, and redraw up to your approved limit as often as you need. The cost structure reflects this flexibility with two distinct charges — a facility fee on the limit itself, and interest on whatever balance is actually outstanding.
The facility fee
A periodic facility fee applies to the total credit limit that has been made available to your company. This fee is charged regardless of how much you have drawn at any given time — it is the cost of keeping the line open and accessible. The fee is stated as part of your Flex agreement before you activate the facility.
Interest on drawn funds
Interest accrues only on the balance you have actually drawn down. If you repay your balance in full, interest stops. If you draw again, interest resumes on the new outstanding amount. This means your cost of borrowing tracks your actual usage rather than your maximum limit.
How the two charges combine
The total cost of Flex in any given period is the facility fee plus the interest accrued on your drawn balance during that period. For light users who draw occasionally and repay quickly, the interest element will be modest; the facility fee reflects the value of having headroom available even when you are not using it. For heavier continuous users, the interest component will dominate. Your offer document includes an illustrative example showing how the two elements combine.
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: Comparing total cost across Creditcorp products, How does interest accrue day to day?, Does settling early actually save money?