2 min read
Compares total cost and monthly payment of two offers side by side.
Step 1: line up the total repayable
For each offer, get the total you will repay in pounds for the exact amount and term you want. This total cost of credit is the single most honest comparison — it captures interest and mandatory fees together, and cannot be gamed by stretching the term.
Step 2: compare the APR
Set the APRs side by side for a quick like-for-like on the rate, remembering that a flat rate must be converted first or it will look deceptively cheap. See flat rate vs APR.
Step 3: read the fees and flexibility
Check arrangement fees, any early-settlement charges, and whether you can overpay without penalty. A slightly higher rate with free early repayment can cost less overall if you clear the loan ahead of term. See loan fees explained.
Step 4: weigh structure and security
Finally, weigh what each loan asks of you: is it secured, does it need a personal guarantee, how fast is funding? A no-PG, unsecured loan that protects your assets may be worth a small premium over one that does not.
Compare on the numbers
Use the calculator to work out each offer's total and put them on equal footing.
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
How do I compare business loan offers fairly?
Line up the total repayable in pounds for the same amount and term, compare APRs for a like-for-like rate, read the fees and early-repayment terms, and weigh whether each asks for security or a personal guarantee.
Is the loan with the lowest rate always cheapest?
Not necessarily. Fees, term and flexibility change the real cost. A slightly higher rate with no arrangement fee and free early repayment can cost less overall than a low headline rate with heavy charges.
Should I factor in security when comparing loans?
Yes. A no-personal-guarantee, unsecured loan protects your assets, which can be worth a small premium over a secured or guaranteed loan. The cheapest loan on paper is not always the right one.
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