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Estimates an annualised cost including fees so you can compare offers like-for-like. Illustrative, not a statutory APR.
Arrangement and set-up fees
An arrangement fee — sometimes called a set-up or facility fee — is charged for putting the loan in place, often a percentage of the amount borrowed. It may be deducted from the advance or added to the balance. Either way it raises the true cost, which is why it belongs in the APR.
Drawdown and utilisation fees
On revolving facilities you may pay a fee each time you draw funds, or a charge on the unused portion of a line. These suit flexible borrowing but must be counted when comparing against a simple term loan, where you pay interest only on what you take.
Early-settlement charges
Some agreements charge for repaying early, to recover interest the lender expected. Others let you settle any time and save the remaining interest. This single term can change whether overpaying is worthwhile, so read it before you sign.
Late and default fees
Missing a payment can trigger a default charge and, worse, a mark on your credit file. These are avoidable costs — the reason to borrow with headroom and keep repayments comfortably within your cash flow.
Price the fees in
Use the calculator to add fees to the interest and see the real 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 fees do business loans usually carry?
Commonly an arrangement or set-up fee, sometimes a drawdown fee on revolving facilities, and occasionally an early-settlement charge. Late-payment and default fees apply only if you miss a payment.
Are business loans with no arrangement fee cheaper?
Not always — a no-fee loan may carry a higher rate. Compare the total repayable or the APR, both of which fold fees and interest together, rather than judging on the fee alone.
Can I avoid an early-settlement charge?
Choose a facility that allows penalty-free early repayment. Many reducing-balance loans do, letting you save the remaining interest by clearing the debt when cash allows.
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