Early-settlement charge is a charge of up to 28 days' interest that may apply when a company settles its loan early. It is always shown in the settlement figure first.
In practice
Settling early stops the daily interest, which usually saves money overall. Where an early-settlement charge applies it is capped at up to 28 days' interest and is set out inside the settlement figure before you commit, so there are no surprises. Request a settlement figure whenever you are considering paying the loan off.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Settling your loan early when money comes in, Can I settle my company's arrears with a lump sum?, What happens to the 100% cost cap if I fall behind?.