2 min read
Definition
A demand facility is repayable whenever the lender calls it, without waiting for a default. Most traditional overdrafts are legally repayable on demand.
In plain terms
The theoretical "pay it all back now" power is rarely used casually, but it exists — which is why demand facilities are risky to treat as permanent capital.
Why it matters for your company
Fund long-term needs with committed term borrowing, and keep demand facilities for genuine short-term swings. Credicorp’s committed facility avoids the on-demand risk.
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Uncommitted facility
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Committed facility
A committed facility is credit the lender is legally bound to provide up to an agreed limit — certainty you…
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Term loan
A term loan is a fixed lump sum borrowed upfront and repaid over a set period in regular instalments of…
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.