Depending on your facility type, a monthly account management fee may apply throughout the term. Not all products carry this charge — some facilities are interest-only with no recurring administration fee. Your offer letter itemises every charge, recurring and one-off, so you can assess the full cost before you commit.
What does a monthly account fee cover?
Where a monthly account management fee is charged, it covers the ongoing administration of your facility: maintaining your account record, processing repayments, providing portal access, and generating statements. It is a fixed fee per month and does not vary with your balance. Illustrative, not a quote: a £15 monthly fee over a twelve-month term adds £180 to the total cost of the facility and is included within the total charge for credit figure in your offer letter.
Is the monthly fee included in my regular repayment?
It depends on how your repayment schedule is structured. In many cases the monthly fee is bundled into your regular repayment instalment so you make one payment each period. In others it is collected separately. Your repayment schedule in the offer letter breaks down the capital, interest, and fee components of each instalment so you can see exactly what each payment covers.
Does the monthly fee change if I repay early?
If you settle early, the monthly fee stops accruing from the settlement date. You will not be charged monthly fees for the remaining contracted term after settlement. The months already elapsed are payable as part of any outstanding balance. Your settlement figure will reflect fees only to the proposed settlement date.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How is the total cost of borrowing shown on my offer?, Is there an arrangement fee on a business loan?.