2 min read
Security over book debts
Invoice finance advances cash against unpaid invoices, and the lender takes an assignment or fixed charge over those book debts. If the company defaults, the lender collects the invoices. This is company security; it does not touch you unless you also sign a personal guarantee.
Weighing it up
Securing invoices can lower the rate but ties up your receivables and can complicate customer relationships. An unsecured term loan leaves your invoices free — compare the true cost either way.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. An unsecured Credicorp loan leaves your book debts unencumbered. See business loans or apply online.
Frequently asked questions
Does invoice security make me personally liable?
No. Security over book debts is company security. Personal liability only arises from a personal guarantee you sign yourself.
Does it lock up my invoices?
Effectively yes — the lender has first claim on the receivables it advances against, which can limit flexibility with those customers.
Related reading
What does 'secured against company assets' mean?
Securing a loan against company assets gives the lender a claim over the business's property or equipment if…
Read →
Can a lender register a charge without a personal guarantee?
Yes — a charge secures the loan against company assets, while a personal guarantee secures it against you…
Read →
Can I borrow without putting up security?
Unsecured business borrowing is possible for limited companies with solid trading records, but lenders…
Read →
A supplier offered a discount for paying early — should I borrow to take it?
An early-payment discount is often worth borrowing for, because the annualised saving usually beats…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.