# The alternatives we recommend you check before applying The operator's own product page at [credicorp.co.uk/business-loans](https://credicorp.co.uk/business-loans/) lists nine alternatives a director should consider before applying for a Creditcorp loan. The reasoning is plain: Creditcorp's products are useful for a specific job — a small, short, urgent business-credit need with no personal guarantee — and for most other needs, there is a cheaper option. This piece is the longer-form version of why each one is on the list. ## 1. A business overdraft A pre-arranged overdraft on a business current account. Typically priced at **6–15% a year** (per the operator's own framing). If your company has one set up — or your bank will set one up — an overdraft is almost always cheaper than a Creditcorp loan for any short-term cash-flow gap. The trade-off: most UK high-street banks don't offer business overdrafts to very small or very new companies, and the application is slower than a Creditcorp application. ## 2. A business credit card Revolving credit on a card account. Typically priced at **12–25% a year** if you pay in full each month or pay only the minimum on a part-amortising balance. Useful for inventory purchases, supplier deposits and trade with major-brand counterparties. Not useful when you need cash in the business bank account. ## 3. Invoice finance Selling (factoring) or borrowing against (invoice discounting) unpaid invoices. The lender typically advances **70–90% of the invoice within a day**, collects the invoice from the buyer, and pays the rest minus a fee on receipt. Good for businesses with large invoices to creditworthy buyers and a slow payment cycle. Not useful if you don't yet have unpaid invoices to use as collateral. ## 4. Asset finance Financing against business assets — equipment, vans, machinery. Two main flavours: hire-purchase (you own at the end) and finance lease (you don't). Useful for capital purchases. Not useful for working capital. ## 5. A grant Non-repayable money. UK government and devolved-government grant schemes change frequently; the [gov.uk Business Finance Support Finder](https://www.gov.uk/business-finance-support) is the canonical place to start. Eligibility is usually narrow (sector, region, R&D, decarbonisation, etc.), but if you are eligible, a grant beats every other form of finance. ## 6. A Start Up Loan A British Business Bank scheme for new companies (typically under three years old). Personal loan to the founder, fixed rate, repayable over 1–5 years. Up to £25,000. Available via partners such as [startuploans.co.uk](https://www.startuploans.co.uk/). Good for early-stage businesses where the funding need is larger than Creditcorp can do and the founder is willing to borrow personally. Note: a Start Up Loan is a *personal* loan, not a body-corporate loan; the founder is on the agreement. ## 7. A larger SME loan from a mainstream lender If you need £5,000 or more, the operator recommends checking mainstream UK SME lenders first. The three the operator names by example are: - [iwoca](https://www.iwoca.co.uk/) — up to £1m; terms 1–5 years; representative APR around 49%; UK Ltd and LLP borrowers; FCA-registered for payment services (not for consumer credit). - [Cubefunder](https://www.cubefunder.com/) — small-business loans up to ~£100,000; short to mid terms. - [Funding Circle](https://www.fundingcircle.com/uk/) — up to £500,000; 6 months to 6 years; marketplace lender backed by institutional capital. Larger SME loans almost always require a personal guarantee, especially under £100,000. That's a real cost to weigh up — see our [explainer on personal guarantees](/articles/why-we-dont-take-personal-guarantees). ## 8. A director's loan You lend money from your own savings into the company. Properly documented (date, amount, interest rate if any, repayment terms), it's a clean and cheap way to fund a short-term gap if you have the personal savings to spare. The HMRC rules for director's loans are specific — interest, benefit-in-kind treatment if interest-free, the s.455 corporation-tax charge if the loan goes the other way (company to director) and isn't repaid within nine months. Worth a quick conversation with the company's accountant. ## 9. Asking a customer to pay early Sometimes the cheapest move of all. A polite "we have a cash-flow gap this week, would early settlement of invoice N save us both time" with a small discount on offer (1–2% off for paying ten days early) is a faster solve than any lender, and the cost (the discount) is usually less than a short-term loan would charge. ## When Creditcorp is the right answer The honest answer from the operator's own product page is: "You need a small amount in the company account in the next few hours, you can repay within a few weeks, and you do not want a personal guarantee on your home. If that is you, we are built to move quickly. If it is not, almost any option above will cost you less." In other words: a Creditcorp loan is right for the specific intersection of (small, short, urgent, no PG). Everything else has a cheaper route. ## Related - [Products at Credicorp Limited](/products/) - [Operator's business-loan page (with the same alternatives list)](https://credicorp.co.uk/business-loans/) - [Operator's product comparison (Loan, Flex and Slice)](https://credicorp.co.uk/compare/) - [Why Creditcorp does not take a personal guarantee](/articles/why-we-dont-take-personal-guarantees) - [Resources — SME credit references](/resources/)