2 min read
What it means
Flexible repayment features let you adapt payments to your cash position — overpaying in good months, reducing or pausing in lean ones, or repaying early without penalty. A revolving facility is inherently flexible, since you draw and repay at will; some term loans add flexibility as a feature, sometimes for a slightly higher cost.
Is it worth it?
It's worth paying for when income is uneven — seasonal trade, project work, a hire still ramping up — because matching payments to cash reduces the risk of a missed instalment. If your income is steady and predictable, a plain fixed schedule is cheaper and perfectly fine. See when flexible repayment is worth paying for.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Does flexible repayment cost more?
Sometimes a little, as a feature on a term loan. On a revolving facility, flexibility is built in at no premium. Weigh any extra cost against the value of matching payments to uneven income.
Who benefits most from flexible repayment?
Businesses with lumpy or seasonal income, where a fixed monthly payment can bite in a quiet month. If your revenue is steady, a fixed schedule is simpler and usually cheaper — flexibility you won't use isn't worth paying for.
Related reading
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Should I borrow a fixed amount or use a facility?
Use a fixed-term loan for a one-off, defined cost; use a revolving facility for a recurring or unpredictable…
Read →What happens if I miss a repayment?
Missing a scheduled repayment triggers a default notice process and may result in late fees, credit file…
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.