2 min read
Definition
An interest rate buffer is the margin between what you can afford and what your current payments are, deliberately kept so a rate rise does not break your cover. Lenders build one into their affordability tests; prudent borrowers build their own.
In plain terms
It is the shock absorber on your borrowing — the room to keep paying comfortably even if rates climb.
Why it matters for your company
Borrow with a buffer, not to the limit, so a rise is an inconvenience not a crisis. See how to stress-test a loan against rate rises.
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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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.