Glossary

Capitalised arrangement fee

A capitalised arrangement fee is added to the loan balance rather than paid upfront — so you then pay interest on the fee itself over the whole term.

2 min read

Added to the loanNot paid upfront

Interest on the feeOver the term

Definition

A capitalised arrangement fee rolls the setup fee into the loan balance instead of you paying it separately. It eases the upfront cost but means you pay interest on the fee across the term, raising the true cost above paying it upfront.

In plain terms

Rolling the fee in feels cheaper today but costs more overall, because the fee sits in the balance racking up interest.

Why it matters for your company

Where you can, pay the arrangement fee upfront rather than capitalise it. See arrangement fee and the APR and deducted interest.

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.