2 min read
The whole picture
A lender totals your existing repayments against your cash flow to judge affordability for the new loan. Well-serviced existing debt is normal. Multiple stacked short-term facilities are a warning sign of strain.
When to consolidate
If several facilities are crowding your cash flow, refinancing them into one longer, cheaper loan can lower the monthly burden and improve your coverage ratio. Model the combined position first.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Will existing loans stop me borrowing more?
Not if the total is comfortably affordable. Lenders assess your whole repayment burden against cash flow, so well-serviced debt is fine; overstretched is not.
Should I consolidate before borrowing?
If stacked facilities are straining cash flow, consolidating into one cheaper, longer loan can lower the monthly burden and improve affordability.
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Read →Can I apply for a loan to refinance existing business debt?
Yes — refinancing replaces existing debt with a single, often cheaper facility. Lenders assess the new total…
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.