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Definition
An early settlement figure is a lender’s formal quote of what it costs to repay a facility ahead of its scheduled end. It comprises the remaining principal, interest accrued to the settlement date, and any early-repayment charge or interest rebate. It is usually valid for a set number of days.
In plain terms
It is the one-off number to pay a loan off today. Sometimes it saves interest; sometimes an exit charge eats the saving.
Why it matters for your company
Always request a written settlement figure before clearing a loan early, and check for a rebate or a penalty. Model the saving with the early settlement calculator. See Rule of 78.
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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