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Definition
APR (annual percentage rate) folds compulsory fees into an annualised cost and is the standard for comparing loans. EAR (effective annual rate) focuses on the effect of compounding and is used for overdrafts, where there is no fixed term or drawdown. Both express cost per year, but with different emphases.
In plain terms
APR is the loan-comparison number; EAR is the overdraft number. Use whichever matches the product you are pricing.
Why it matters for your company
Compare loans on APR and overdrafts on EAR — and always ask for the total repayable too. See APR and EAR.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
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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.