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The three inputs
Repayments on a reducing-balance loan come from the amount, the rate, and the term. A longer term lowers the monthly payment but raises the total interest; a higher rate raises both.
Use a calculator
Rather than doing the maths by hand, enter your figures into the loan repayment calculator to see the monthly payment and total interest, then check it against your affordability.
What it means for you
Know the payment before you commit. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
How does the term affect my repayments?
A longer term lowers the monthly payment but increases the total interest, because you hold the money for longer. A shorter term costs less overall but strains cash flow more.
What repayment can I afford?
Aim for a payment your cash flow covers comfortably even in a slow month — a debt service cover ratio of at least 1.25 is a sensible target. Do not stretch to the maximum.
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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.