What does it cost to borrow £30,000?

2 min read

Filed accountsUsually expected at this size

≈ £968/monthIllustrative: 10% × 36 months

≈ £4,849Illustrative interest over 36 months

-£1,624Interest saved at 24 months instead

The £30,000 underwriting bar

Around this level the assessment stops being purely statement-led. Most lenders will want filed accounts at Companies House, a view of existing borrowing, and evidence that the repayment fits inside your net cash generation — not just your turnover. Thin profit isn't an automatic refusal: what matters is whether the business can afford the payment from real, repeating cash flow. Companies that arrive with clean, current filings and a clear affordability story routinely price better than the same business applying in a hurry.

Worked example at £30,000

Illustratively: £30,000 on a reducing balance at 10% a year over 36 months is about £968 a month — roughly £34,849 repaid, around £4,849 of it interest. Compress the same rate into 24 months and the payment rises to about £1,384 while the interest falls to roughly £3,224 — a saving of about £1,624 for carrying a heavier payment for a shorter time. Fees sit on top of either schedule, and some may be deductible — see arrangement fees and tax.

Paying less over the life of the loan

On a reducing balance, anything that shrinks the balance sooner shrinks the bill: regular overpayments in strong months, or settling early once the project the loan funded starts paying back — checking first what an early settlement costs under your agreement. Model your own £30,000 schedule on the true cost calculator, then apply to Credicorp for a firm figure — the quote itself commits you to nothing.

Frequently asked questions

What do lenders want to see before lending £30,000?

Typically: filed accounts, several months of bank statements, a picture of existing debt, and headroom between your net cash generation and the proposed payment. The illustration's £968 a month only works if your normal trading month absorbs it comfortably. Preparing those documents before applying tends to improve both the decision speed and the rate.

Is it worth taking £30,000 over two years instead of three?

If the payment fits, usually yes on pure cost: in the illustration the shorter schedule saves about £1,624 of interest. The trade is resilience — the higher payment bites harder in a weak month. A middle path many businesses use is taking the 36-month term for safety and overpaying in good months, which recaptures much of the saving without the fixed obligation.