2 min read
What it includes
The true cost is the total repayable minus the amount borrowed — every pound of interest plus arrangement and admin fees, across the full term. A headline rate ignores fees and how a flat rate or factor rate is structured, so it routinely understates what you'll actually pay.
How to work it out
Convert any pricing structure into total pounds repayable with the true-cost calculator, then compare offers on that single figure. A loan with a lower rate but higher fees, or a longer term, can cost more overall. Always ask a lender for the total repayable in pounds — a straight answer is itself a sign of a fair, transparent lender.
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
Why is the true cost higher than the interest rate?
Because it includes fees and reflects how the rate is applied over time. Flat rates, factor rates and arrangement fees all add cost the headline rate doesn't show. Total repayable captures the lot.
How do I compare loans fairly?
On total repayable in pounds, including all fees, over the full term — not on the monthly payment or the headline rate. A true-cost calculator converts any pricing structure into that comparable figure.
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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.