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Choosing the right business finance.
The right finance is the one whose shape matches the shape of the need. A one-off gap, an uneven recurring need, a single supplier bill and a long-lived asset each call for a different answer. This guide pairs the need with the instrument, and sets the options side by side.
Match the shape, not the headline rate
Borrowers tend to shop on price. The bigger mistake is buying the wrong shape — finance that does not match how the need behaves over time.
Most finance regret comes from a mismatch, not a misprice. A company funds a long-lived asset with short-term credit and has to keep refinancing; or it takes a fixed lump sum for a need that rises and falls, and pays interest on money it is not using. The first question is therefore not "what does it cost?" but "what shape is the need?" Get the shape right and the cost question becomes simple to answer.
There are four shapes worth recognising. Is the need a single, defined gap with a clear repayment date? Is it uneven and recurring? Is it one specific supplier bill? Or is it a long-lived asset, or an ongoing lag in getting paid by customers? Each points to a different instrument.
The shape of the need, and what fits
Five common needs, paired with the instrument built for each.
A one-off, defined gap
A known amount, for a known period, with a clear repayment date — bridging a confirmed receivable or a short timing gap.
→ Short-term bridging loanAn uneven, recurring need
Cash that rises and falls week to week. You want a limit to draw on, repay and reuse, paying only for what you use.
→ Revolving facilityA specific supplier bill
One invoice you would rather spread, with the supplier paid in full today and the cost repaid over a few weeks.
→ InstalmentsA long-lived asset
Plant, vehicles or equipment that earn over years. The funding should be spread over the asset's working life.
→ Asset financeAn ongoing receivables lag
A persistent gap between invoicing customers and being paid, tied to your sales ledger rather than a one-off event.
→ Invoice financeNot sure whether your gap is a one-off or a recurring pattern? The cash conversion cycle guide helps you tell the difference, and the working-capital gap calculator puts a figure on it.
The finance types, side by side
A general comparison of common UK business finance types. Credicorp Limited offers the first three; asset and invoice finance are shown for context and are provided by other lenders.
| Type | Best for | Shape | Repaid |
|---|---|---|---|
| Bridging loan | A one-off, defined gap with a clear end date | Single lump sum, fixed term | In full at the end of the term |
| Revolving facility | Uneven, recurring needs | A limit to draw, repay and redraw | Ongoing; interest on the drawn balance |
| Instalments | Spreading a specific supplier bill | One bill, split into a few payments | Over a fixed short plan |
| Asset finance | Plant, vehicles or equipment | Funding tied to a long-lived asset | Over the asset's working life |
| Invoice finance | An ongoing receivables lag | Advance against the sales ledger | As customers settle invoices |
A general orientation, not advice on a specific transaction. Asset and invoice finance are provided by other lenders; this guide includes them so directors can place the Credicorp products in the wider market.
Where the Credicorp products fit
Three of the shapes above map directly onto the three Credicorp products. The borrower is always the company, with no personal guarantee.
| Bridging Loan | Credicorp Flex | Credicorp Slice | |
|---|---|---|---|
| Shape of need | One-off, defined gap | Uneven, recurring | A specific supplier bill |
| Amount | £50 – £500 | £50 – £500 limit | £50 – £2,000 bill |
| Pricing | 0.25%/day on principal, £5 fee | 0.25%/day on drawn balance, £5 first drawdown | 6% flat fee of the bill |
| Term | 14 – 84 days | Ongoing; 14-day cycles | 3–4 instalments, up to 8 weeks |
| Cost cap | 100% of principal | 100% per drawing | 100% of the bill |
These are small, short-term facilities, and the operator is candid that for many needs a business overdraft, business credit card, a larger SME loan, asset finance or invoice finance will be cheaper. See the full product detail at /products/, and the operator's own comparison at credicorp.co.uk/compare.
A short decision routine
Five questions, in order. The answers usually name the instrument before you reach a price.
- Is the need a one-off or a pattern? A defined one-off points to a bridging loan; a recurring rise and fall points to a revolving facility.
- Is there a clear repayment event? A receivable you can see arriving makes a fixed-term bridge straightforward to repay.
- Is it tied to one supplier bill? If so, instalments keep it simple and the supplier paid today.
- Is it an asset or a long-term need? Long-lived assets and structural needs want longer-dated finance — asset finance, or a longer SME term loan — not short-term credit.
- Have you sized it, and can the company afford it? Put a number on the gap with the working-capital gap calculator and a cover figure with the cashflow runway calculator before you borrow anything.
Whatever the shape, the borrower is the company, and a Credicorp loan to a UK limited company, LLP or PLC is unregulated business credit under Article 60B of the FSMA RAO 2001. Knowing which protections do and do not apply is part of choosing well.
Where to go next
- The three Credicorp products — Business Bridging Loan, Credicorp Flex and Credicorp Slice.
- The cash conversion cycle — is your gap a one-off or a pattern?
- Building business creditworthiness and Open Banking for business finance.
- Working-capital gap, cashflow runway and late-payment interest calculators.
- Compare Loan, Flex and Slice, the regulatory position and the glossary.