How to improve the rate a lender offers over time

2 min read

Track recordPay on time, always

Strong accountsFiled and healthy

Lower riskCheaper money

Step 1 — build a payment track record

Pay every supplier and lender on time. Consistent on-time payment is the single biggest driver of a strong credit score, which feeds risk-based pricing.

Step 2 — keep the balance sheet strong

Retain profits, keep gearing sensible and hold a cash buffer. A robust balance sheet and healthy interest cover signal low risk and earn a thinner margin.

Step 3 — deepen a lender relationship

A lender that has seen you perform will often price you more keenly than a stranger. Start with a modest facility, service it flawlessly, and build from there.

Step 4 — time your borrowing

Apply when your accounts and cash position are at their strongest, not when you are desperate. A confident application from a healthy position earns a better rate.

Step 5 — review and refinance

Revisit your facilities as your profile improves — you may qualify for a lower rate than when you first borrowed.

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 long until my rate improves?

A clean track record of on-time payments and strong accounts builds over months to a couple of years. The sooner you start, the better priced your next application.

Does staying with one lender help?

It can. A lender that has watched you perform often prices you more keenly than a new one. But still get competing quotes to keep them honest.

Should I refinance as I improve?

Review your facilities periodically. If your profile has strengthened, a refinance at a lower margin may save money — net of any early-repayment charge.