The true cost of borrowing: fees, interest and the total

2 min read

Total repayableThe number that matters

Fees countArrangement, admin, exit

Term mattersLonger term, more interest

Amount borrowed (£)

Arrangement & other fees (£)

Annual interest rate (%)

Term (months)

Estimates an annualised cost including fees so you can compare offers like-for-like. Illustrative, not a statutory APR.

Start with the total repayable

Before comparing offers, ask each lender for the total amount you will repay over the life of the loan, including every fee. This single figure cuts through the noise of headline rates, flat rates and factor rates. If a lender cannot or will not give it to you, treat that as a warning sign, and read business finance fees explained.

The fees that get overlooked

Common charges beyond interest include an arrangement fee (often a percentage of the loan, sometimes deducted from what you receive), admin or documentation fees, and an early-repayment charge if you settle ahead of term. On some facilities there is also a non-utilisation fee for undrawn headroom. Each one nudges the true cost up.

How the term changes the picture

Stretching a loan over a longer term lowers the monthly payment but raises the total interest, because you hold the money for longer. A shorter term costs less overall but strains cash flow. The right balance is the shortest term your affordability comfortably supports — not the longest one you can technically qualify for.

Work out your number

Use the calculator below to see the monthly payment and total interest, then add any arrangement or exit fees the lender has quoted to get the real total repayable. Compare that against every other offer on the same basis.

Borrow with the full picture

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 is usually the biggest hidden cost?

For many businesses it is the arrangement fee combined with a longer-than-needed term. Together they can add thousands to the total repayable without changing the headline rate.

Should I always pick the lowest total repayable?

Usually, but not blindly. A slightly higher total can be worth it for flexibility, speed, or no personal guarantee. Weigh the total against what the loan lets your business do.

Do Credicorp loans have hidden fees?

No. Credicorp quotes the cost transparently so you can see the total repayable before you commit. Ask for it in writing on any offer you are comparing.