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Estimates an annualised cost including fees so you can compare offers like-for-like. Illustrative, not a statutory APR.
Why fees belong in the APR
The APR exists precisely to bundle compulsory fees with interest. An arrangement fee of 3% on a 9% loan pushes the real annual cost well above 9%. Comparing on the rate alone hides it.
Deducted and capitalised fees cost more
A fee deducted from the advance means paying interest on money you never received. A capitalised fee sits in the balance accruing interest for the term. Both cost more than paying the fee upfront — see the effective cost of a fee.
The fees to hunt for
Beyond arrangement fees, look for admin or documentation charges, non-utilisation fees on committed lines, and exit charges. Each nudges the real cost up.
Compare on the all-in cost
Fold every fee into the APR or the total amount payable, then compare. The calculator below gives the all-in figure.
Where Credicorp fits
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.
See effective cost of a fee and how to work out the APR on a quote.
Frequently asked questions
Do fees really change the APR much?
Yes. A few percent in fees can add more to the real cost than a percentage point on the rate. Always compare on APR or total repayable, not the headline rate.
Why does a deducted fee cost more?
Because you pay interest on the full loan while receiving less than the full amount. You are effectively paying interest on money you never got.
Should I pay a fee upfront or capitalise it?
Upfront is usually cheaper, because a capitalised fee accrues interest over the term. Pay upfront where cash flow allows.
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