2 min read
Illustrative only. Assumes a fixed rate and equal monthly repayments (annuity). Your actual offer depends on Credicorp’s assessment of your company.
Borrow only what you need
Interest is charged on every pound you borrow, so the simplest saving is not borrowing more than the need requires. Padding a loan "just in case" costs real interest on money that sits idle. Size it to the job — see how much to borrow.
Choose the shortest affordable term
A shorter term means fewer months of interest and a lower total cost. Balance it against affordability — the payment must stay comfortable. Pick the shortest term your cash flow can carry with headroom. See choosing a loan term.
Avoid a flat rate, and mind the fees
A flat rate costs far more than its headline suggests — insist on the APR and compare on that. Watch arrangement fees and early-settlement charges too; they are part of the price. See flat rate vs APR.
Overpay and strengthen your file
On a reducing-balance loan without penalties, overpaying removes future interest. And a stronger credit score earns better pricing next time — see improving your score.
Model the savings
Use the calculator to see how amount, term and overpayments change the total cost.
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 can I make a business loan cheaper?
Borrow only what you need, choose the shortest affordable term, insist on an APR rather than a flat rate, watch the fees, and overpay where allowed. A stronger credit file also earns better pricing.
Does a shorter term always cost less?
In total interest, yes — fewer months of interest cost less. The trade-off is a higher monthly payment, so choose the shortest term your cash flow can carry with comfortable headroom.
Is overpaying a loan worth it?
On a reducing-balance loan without early-settlement charges, usually yes — an overpayment removes the future interest on that amount. Check the agreement's terms before assuming there is no cost to overpaying.
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