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Estimates an annualised cost including fees so you can compare offers like-for-like. Illustrative, not a statutory APR.
Interest is the core
The largest part of most loans' cost is interest, set by the rate and how long you borrow. Whether it is charged on the reducing balance or as a flat rate makes a large difference — a flat rate can nearly double the effective cost. See how interest is calculated.
Fees add to the bill
An arrangement fee, drawdown charges and any early settlement charge all count. A low rate with high fees can cost more than a higher rate with none — which is why the APR exists to fold them together. See loan fees explained.
The term multiplies interest
A longer term lowers each payment but adds more months of interest, raising the total cost. Balancing term against affordability is the central cost decision. See choosing a loan term.
Controlling the total
Borrow only what you need, choose the shortest affordable term, avoid flat rates, and strengthen your credit for better pricing. See reducing loan cost.
See the whole cost
Use the calculator to bring interest, fees and term into a single total.
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.
Frequently asked questions
What makes up the cost of a business loan?
Interest (set by the rate, balance and time), the method it is charged by, any fees, and the term. Together these form the total cost of credit — the true figure you pay above the amount borrowed.
Do fees really change the cost much?
They can. A low rate with a hefty arrangement fee may cost more than a higher rate with none. That is why APR folds fees and interest together, and why you should compare the total repayable in pounds.
How can I control what a loan costs?
Borrow only what you need, choose the shortest affordable term, avoid flat rates in favour of reducing-balance, watch the fees, and strengthen your credit for better pricing next time.
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