How do repayments work on a business loan?

2 min read

InstalmentsPrincipal + interest each period

AgreedAmount and frequency set up front

To zeroTerm loans fully amortise

How a term loan repays

A term loan typically follows an amortisation schedule: each instalment is the same, but the split inside it shifts from mostly interest early on to mostly principal later. By the final payment, the loan is cleared. You can see a schedule with the repayment calculator.

How a facility repays

A revolving facility like Credicorp Flex works differently. You repay the balance you have drawn, and as you do, that limit becomes available again. There is no fixed end-of-term lump because the facility is designed to be reused.

Flexibility and changes

Repayment dates can sometimes be adjusted to suit your cash cycle — see can I change my repayment date. Repaying early is usually possible too; check whether any charge applies in can I repay a business loan early.

Frequently asked questions

Are repayments monthly?

Monthly is the most common frequency, but it is agreed at the outset and some facilities use other cycles. The schedule is set so repayments line up with how your business generates cash.

What happens if I miss a repayment?

Contact the lender early rather than letting it slip — see what happens if I repay a business loan late. A missed payment can incur a charge and affect the company's credit record.