Creditcorp Flex is a revolving facility rather than a fixed-term loan. Your company is approved for a credit limit, and you draw funds when needed — you only incur a finance cost on what is actually outstanding, not on the full limit.
How daily accrual works
Finance charges on a Flex facility accrue each calendar day based on your closing balance that day. The daily rate is derived from your agreed annual facility rate. As an illustrative example (not a quote), a company with £20,000 drawn at an annual facility rate of 24% would accrue roughly £13 per day — the precise rate is fixed in your facility agreement and does not fluctuate. Accrued charges are added to your outstanding balance on a monthly cycle and form part of the amount shown on your statement.
Drawing and repaying within the limit
Subject to your credit limit remaining in place, your company can draw additional funds and repay at any time. Repayments reduce the outstanding balance, which in turn reduces the daily accrual from the following day. This means repaying early — even partially — directly lowers the ongoing cost of the facility. There is no penalty for early partial or full repayment on a Flex facility.
How Flex differs from a term loan
A standard Creditcorp term loan has a fixed repayment schedule and a set end date. Flex is open-ended within the facility term: your company can recycle capacity as it repays, giving more control over working-capital timing. Flex is suited to companies with fluctuating cash-flow needs; a term loan is better suited to a one-off, defined capital requirement.
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 do Creditcorp loan repayments work?, How do I request a top-up or further draw?.