If your company's cash flow improves, paying your loan off early is almost always a sensible move — and we make it simple. You can settle at any point during your term, and you will usually pay less than the original total because settling early stops further interest from accruing. An early-settlement charge of up to 28 days' interest may apply, though we waive it in many cases, and the exact amount — if any — is shown in your settlement figure before you confirm. Here is how to do it and what you can expect to save.
Step one: ask for a settlement figure
You should never just guess the amount or pay your remaining instalments in one lump and hope it clears the balance. Instead, ask us for a settlement figure. This is the precise amount needed to close the loan completely as at a given date, taking into account what you have already paid and the interest rebate you are due. Because the figure depends on the exact date you pay, it is quoted with a short validity window. Our step-by-step guide to how to get a settlement figure shows you how to request one and how to read it.
What you save: the interest rebate
We charge simple interest over your term. When you repay early, you are no longer borrowing for the full original period, so you should not pay the full original interest. The settlement figure therefore includes an interest rebate — a reduction reflecting the time you are no longer borrowing for. In plain terms: pay the loan off halfway through and you avoid a meaningful chunk of the interest that would have accrued over the second half. The earlier you settle, the more of the remaining interest you save.
Settling early does carry an early-settlement charge of up to 28 days' interest — but we waive it automatically in many cases, including if your company is in financial difficulty, if settling early would not leave you better off, or in recognition of a consistent record of good standing. The exact charge, if any, is shown in your settlement figure before you confirm, so there are no surprises, and what you save on the remaining interest is still yours to keep. If you want the detail of how this works, read how the early-settlement charge works.
Step two: pay the settlement amount
Once you have your settlement figure and it is still within its validity window, pay the exact amount by the method we set out. Tips to keep it clean:
- Pay the precise figure quoted — not your usual instalment, and not a rounded number.
- Pay on or before the date the figure is valid to, so the rebate still applies as quoted.
- If the date slips, ask for a fresh figure rather than paying an out-of-date one.
After we receive and reconcile the payment, the loan is closed, any future Direct Debit collections stop, and you will be able to see the account marked as settled.
Partial early payments
You do not have to clear the whole balance to benefit. Paying down more than your scheduled instalment reduces the principal, which reduces the interest that accrues from then on. If you want to make a one-off overpayment rather than full settlement, tell us so we can apply it correctly and, if you wish, recalculate your remaining schedule.
Why it is worth doing
Short-term borrowing is relatively expensive by design — it is built for speed and short use, not to be carried for longer than you need. The single best way to reduce its cost is to repay it as soon as the company comfortably can. Because settling early stops further interest, it usually saves money even after any early-settlement charge. If you are ready, request your settlement figure today and pay it within its window — and if your reason for repaying early is that you are worried about affording the schedule, contact us first, because there may be better options than scrambling to clear it, and in genuine hardship the early-settlement charge does not apply.