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Definition
A discounted rate knocks a set amount off the lender’s standard variable rate for an opening period. It is still variable — if the underlying rate moves, so does your discounted rate — and when the discount ends you pay the full reversion rate.
In plain terms
It is a discount, not a fix. Your payments can still move during the discount, and they jump when it ends.
Why it matters for your company
Treat the discount as a countdown — know the end date and the rate you revert to. See standard variable rate.
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Related reading
Standard variable rate (SVR)
A standard variable rate (SVR) is a lender’s own default rate, set at its discretion, that a facility falls…
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Reversion rate
A reversion rate is the follow-on rate a facility drops onto once its introductory or fixed period ends —…
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Fixed-rate period
A fixed-rate period is the stretch during which your rate is locked and payments are certain, after which the…
Read →Advance rate
The advance rate is how much of an asset's value a lender will lend against — 80% of invoices, say. The gap…
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.