When you have more than one finance offer in front of you, it is easy to fixate on the headline rate and miss the things that change the real cost. A consistent framework helps you compare like with like rather than being swayed by whichever provider presents most confidently.
Five questions to ask of every option
- What is the total amount I will repay? Not just the rate, but every cost added across the agreed term.
- How and when do I repay? Daily, weekly or monthly, and whether the schedule flexes with your cash flow.
- What happens if I repay early? Some structures charge interest only for the time you borrow; others do not.
- What is secured or guaranteed? Credicorp lends to the company and does not take personal guarantees from directors.
- Who am I dealing with? A direct lender, like Credicorp, or a broker who arranges finance through others.
Write it down
Put each option in a column and answer the same five questions for all of them. The exercise often reveals that the cheapest-looking rate carries the least flexible terms, or that a slightly higher cost buys repayment terms that suit your business far better.
A note on protection
Credicorp lends only to UK limited companies and LLPs for business purposes. As an exempt business lender we sit outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. Weigh that alongside the commercial terms when you compare.
See also: Asking for extra time or plain language on calls, How to plan Flex repayments around your cash flow and How to build a sensible shortlist of business lenders.