2 min read
Definition
Default interest is an elevated rate that kicks in when a borrower defaults — typically by missing payments or breaching a covenant. It compensates the lender for higher risk and encourages a swift cure. On business lending it must be a genuine estimate of loss rather than an unenforceable penalty, but it can still add materially to the cost of falling behind.
In plain terms
Fall behind and the meter can speed up: the rate on the debt rises just when you can least afford it.
Why it matters for your company
Contact your lender before you miss a payment — a planned arrangement beats triggering default interest. See grace period and arrears.
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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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.