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Fixed vs variable in a rising market
On a fixed rate, your payment stays put whatever the market does. On a variable rate tied to the base rate, a rise increases your payment. See fixed vs variable rate.
How to protect yourself
If a rise would strain cash flow, a fixed rate buys certainty. On short-term finance the risk is small because you repay quickly. Either way, stress-test the payment against a couple of points of rise before you borrow.
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
Will my payments rise if rates go up?
Only on a variable-rate loan. A fixed rate locks your payment for the term. On short-term finance a rate move has little time to bite because you repay quickly.
Should I fix my rate to be safe?
If a rate rise would genuinely strain your cash flow, yes. If you have headroom, a variable rate offers flexibility and can be cheaper. Stress-test both before deciding.
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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.