2 min read
Definition
Rolled-up interest lets a borrower make no interest payments during the term; instead the interest is capitalised and repaid in full at the end alongside the principal. It suits bridging and development deals where there is little income until the project completes.
In plain terms
You pay nothing along the way, but the debt grows every month, and the final bill is bigger for it.
Why it matters for your company
Only roll up interest when a clear exit will clear the swollen balance. Model it in the compound interest calculator. See retained interest.
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Read →Funding for UK limited companies
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