2 min read
Definition
A blended rate averages the rates on the components of a facility, weighted by their balances — much like a weighted average rate but within one deal. When you top up an existing loan at a new rate, the blended rate is what you effectively pay across the whole balance.
In plain terms
Add new borrowing to old and the effective rate is a mix of both — the blended rate tells you the real cost of the combined debt.
Why it matters for your company
When topping up borrowing, work out the blended rate before agreeing. See weighted average interest rate.
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.