Whether the cost of your facility can change during the term depends on the terms you accepted. Your agreement states whether your charges are fixed for the term or can vary, and on what basis — so this is knowable before you sign.
Fixed versus variable
- A fixed basis means the cost stays on the terms set out for the duration, giving predictability for budgeting.
- A variable basis means the charge can move in line with a reference set out in your agreement, within the limits it describes.
If a change can apply
Where your agreement allows a change, it also sets out how the change is determined and how you will be notified. We do not change costs arbitrarily or without the basis being already written into your terms.
How you would be told
You would be notified in line with your agreement, with enough information to understand the change and what it means for your repayments. If anything is unclear, contact us and we will walk you through it.
Where to check
Read the costs and variation section of your agreement to see which basis applies to you. We keep figures out of help articles because they depend on your facility. This is exempt business lending to your company, with no director guarantee, and the Financial Ombudsman Service does not apply.
See also: Where to find the cost of credit before you sign, What is the difference between interest and fees?, Does being part of a group change my loan terms?.