2 min read
Definition
Loan-to-value (LTV) is the loan as a percentage of the asset’s value. A 60% LTV means the lender funds 60% and you fund 40%. Lower LTV leaves the lender better protected on default, so it usually earns a lower margin. High-LTV lending is priced up for the extra risk.
In plain terms
Put more in yourself and the loan costs less, because the lender has more cushion if things go wrong.
Why it matters for your company
If a keener rate matters, a larger deposit can pay for itself. See secured vs unsecured rate.
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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