2 min read
Definition
Interest rate risk is the exposure a business carries when its borrowing cost can move with the market. On variable debt, a benchmark rise directly raises payments; even fixed debt carries it at reversion or refinance. Managing it is a core treasury task.
In plain terms
It is the chance that the cost of your debt climbs beyond comfort. The more variable your borrowing, the more of it you carry.
Why it matters for your company
Measure your exposure, stress-test it, and hedge or fix if a rise would hurt. 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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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.