2 min read
Why price follows risk
Interest reflects the chance of not being repaid. A company with markers, arrears or thin history presents more risk, so the rate is set higher to match. This is standard across lending, not a penalty peculiar to one lender.
Earning a better rate
Clean conduct, on-time repayments and a thickening credit file all lower your risk over time — and with it, your price on the next facility. A stronger score directly buys cheaper borrowing later.
Applying
Compare the true cost, not just the headline rate, with the true cost calculator, then apply online.
Frequently asked questions
Will improving my score lower my rate?
Over time, yes. A stronger record reduces the risk a lender prices for, so future facilities and renewals tend to come at keener rates.
Is a higher rate for weaker credit a penalty?
It's risk-based pricing, not a penalty — the rate reflects the lender's exposure. As your record improves, so does the price you're offered.
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