Rates are designed to be comparable, but they can flatter or mislead depending on how a facility is structured. When comparing business finance, the most reliable anchor is usually the total amount you will repay, not a single percentage.
Why a rate alone can mislead
A representative annual rate assumes a particular amount and term. On short or flexible facilities, fees and the way interest is applied can mean two products with similar-looking rates leave you repaying noticeably different totals. A rate is a useful shorthand, but it is not the whole picture.
What the total cost tells you
The total amount repayable rolls every charge into one figure. It answers the question that matters most: across the life of this facility, how much will leave my account beyond what I borrowed? Compared like for like, totals are harder to dress up than rates.
How to use both
- Use the rate to get a rough sense of where an offer sits.
- Use the total repayable, plus any early-settlement terms, to decide.
- Check whether repaying early reduces the cost or not.
Reading a Credicorp offer
Your Credicorp Flex or Credicorp Slice offer sets out the rate, the term and what you will repay. We will not quote you a figure in general guidance like this; the numbers that matter are the ones in your own agreement. Credicorp lends only to UK limited companies and LLPs.
See also: Daily interest vs APR: which is the honest comparison?, How to compare the total cost of credit (the honest way) and Understanding the total cost of credit.