2 min read
Definition
A reference rate is the externally set benchmark that a variable-rate facility floats on. Your all-in rate is the reference rate plus a fixed credit margin. Common references are the Bank of England base rate and compounded SONIA.
In plain terms
It is the part of your rate that you and the lender do not control — it tracks the wider cost of money. When it moves, your payments move.
Why it matters for your company
Know which reference rate your facility uses and check the terms for how often it resets. See how loan pricing is built.
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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SONIA
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Bank of England base rate
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Credit margin (loan margin)
Credit margin is the fixed spread a lender adds above the reference rate, reflecting your risk, the lender’s…
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Accounting reference date
The accounting reference date is a company's official year end — the date all its accounts and tax deadlines…
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.