2 min read
Definition
An interest-free period is time during which borrowing costs nothing, provided the balance is cleared within it. It appears as trade credit terms (say 30 days to pay a supplier) or promotional finance. Miss the deadline and interest — often at a high rate — usually applies from the start.
In plain terms
It is genuinely free money for a while — but only if you pay in time. Overrun and the interest can bite hard and backdated.
Why it matters for your company
Use interest-free terms deliberately and clear them before they end. See trade credit and grace period.
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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Interest-only period
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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.