Answers
Common business-finance questions, each answered on its own page.
How much does a business loan cost?
The total cost of a business loan depends on the interest rate or factor rate, the loan term, and any fees applied at…
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APR or factor rate — what's the difference?
APR expresses the annualised cost of credit including fees, while a factor rate is a flat multiplier applied once to…
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Will I pay a charge to repay early?
Many business loan agreements include an early repayment charge (ERC) that compensates the lender for lost interest if…
Read →Is business loan interest tax-deductible?
Interest paid on borrowing used wholly for business purposes is generally deductible against a UK limited company's…
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What happens if I miss a repayment?
Missing a scheduled repayment triggers a default notice process and may result in late fees, credit file damage, and in…
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Can I restructure a business loan?
A business loan restructure typically involves negotiating with the existing lender to modify the repayment schedule,…
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How do I work out the total repayable?
Total repayable is the sum of every payment you will make over the life of the facility — principal, interest, and all…
Read →What fees should I expect on a business loan?
Business loans typically carry an arrangement fee and may include documentation, drawdown, or administration fees —…
Read →Should I pick a fixed or variable rate?
A fixed rate gives certainty of payment; a variable rate can reduce cost if market rates fall but exposes the business…
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.