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Definition
Per diem interest is the pounds-and-pence interest that accrues each day: outstanding balance × (annual rate ÷ 365). Lenders use it to quote an early settlement figure valid to a specific date, adding one day’s per diem for each day beyond the quote. It is the practical face of daily accrual.
In plain terms
It is the daily price of holding the debt, in real money — handy when timing a payoff to the exact day.
Why it matters for your company
Ask for the per diem when settling early so you can time the payoff precisely. See daily interest accrual and early settlement figure.
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Per annum (p.a.)
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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.