Inside Credicorp Flex: drawdowns, repayments, and the math that keeps it fair

Credicorp Flex is the revolving credit facility version of our short-term business loan. The headline numbers are simple enough — you draw up to your agreed limit, you pay interest only on the drawn balance, the per-drawing cost is capped at 100%. But the day-by-day mechanics behind those headlines are the bit most customers ask about, and they are easier to understand when you walk through a real drawing. This article does exactly that.

Day 0 — the drawdown

You sign in to the portal, open the Flex panel, type an amount up to your remaining limit and confirm. Behind the scenes we run a quick eligibility check against the agreement (the limit is still in date; no holds on the account; the minimum-balance rules are met) and then issue the drawing. The funds reach your nominated business bank account by Faster Payments — typically within 90 seconds, occasionally up to two hours during a bank’s processing window. You get a confirmation email and a portal entry showing the new drawn balance + the date interest starts.

Day 1 — interest starts

Interest accrues from the day after the drawing lands. At our headline daily rate of 0.25%, a £1,000 drawing accrues £2.50 per day. That charge sits in an “interest accrued, not yet billed” bucket until the first minimum-repayment cycle.

The minimum-repayment formula

Your minimum monthly repayment on Flex is the GREATER of (a) 10% of your drawn balance at the cycle date or (b) £20. So a £1,000 drawn balance has a £100 minimum; a £150 drawn balance has a £20 minimum (the floor); a £50 drawn balance has a £20 minimum. The minimum scales with the balance — drawing less means paying back less.

Each cycle’s minimum payment is split: interest accrued during the cycle is paid first; whatever remains of the minimum goes against the principal. So if a £1,000 balance accrues £75 of interest during the cycle, the £100 minimum repayment becomes £75 interest + £25 principal, bringing the balance to £975. Next cycle the minimum is £97.50, and so on.

Early repayment and the cap

You can pay back more than the minimum any time, with no penalty. Pay the full drawn balance and the interest meter stops the same day — no early-repayment fee, no notice period, no minimum interest charge. If a drawing accumulates interest + fees totalling 100% of the drawn amount, the cost meter stops there too: the total cost cap is per-drawing on Flex (not across the whole facility), so each drawing has its own cap reset.

What happens at the end of a drawing

Once a drawing is fully repaid, the credit limit it used is freed and available to draw again. There is no fee to keep the facility open, no minimum activity, no maintenance charge. An unused Flex line with a good repayment history is exactly the kind of customer we periodically offer a credit-limit increase to.

Where the numbers sit in the portal

Every Flex drawing has its own panel showing: drawing date, drawn amount, interest accrued to date, total cost to date (against the cap), next minimum payment date and amount, and a one-click “settle in full now” action. There’s also a CSV export of all activity for the accountant.

If you’d like to talk through whether Flex or a one-time loan is the right shape for your need, the business loans page has the comparison calculator. Specific questions about your account — write to support@credicorp.co.uk or click “Get help with payments” in the portal.