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Estimates an annualised cost including fees so you can compare offers like-for-like. Illustrative, not a statutory APR.
Step 1 — find the total cost of credit
Work out the total cost of credit: everything you repay minus what you borrow. For a factor rate, it is (factor − 1) × amount. For a flat rate, it is rate × amount × years.
Step 2 — add every compulsory fee
Include the arrangement fee and any admin charge, and note if any is deducted from the advance — that raises the effective cost further.
Step 3 — annualise over the term
Divide the total cost by the amount borrowed, then annualise over the term to get an approximate APR. A short term on the same total cost gives a higher APR — see annualised cost.
Step 4 — use the calculator to check
The calculator below gives the all-in annual cost so you can sanity-check your manual figure and compare offers on one basis.
Step 5 — compare on APR and total repayable
Line every quote up on APR and total amount payable, then choose.
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
Can I convert any quote to an APR?
You can get a close estimate for any quote by finding the total cost, adding fees, and annualising over the term. The exact APR depends on the repayment schedule.
Why does a shorter term give a higher APR for the same cost?
Because APR annualises the cost. The same total charge over a shorter period is a higher rate per year. That is why factor-rate products repaid fast can carry high APRs.
Do I need to include fees?
Yes. A true APR includes compulsory fees. Leaving them out understates the cost and defeats the comparison.
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