Credicorp does not penalise companies for repaying ahead of schedule in most circumstances. If your company comes into funds — from a trade sale, a cash windfall, or simply stronger-than-expected trading — paying down your facility early reduces the total finance cost and frees up your balance sheet.
Full early settlement
To settle a term loan in full before the final instalment date, contact Credicorp through the client portal or by email to request a settlement figure. The figure reflects the remaining capital outstanding plus any accrued but unbilled finance charges to the proposed settlement date. No additional break fee applies after the initial 28-day period set out in your facility agreement. As an illustrative example (not a quote), a company 10 months into a 24-month term loan might find its settlement figure is materially lower than the sum of remaining scheduled instalments because future finance charges are not included.
Early repayment charge in the first 28 days
If your company repays the facility in full within 28 days of drawdown, a conditional early repayment charge applies. This is because a minimum cost-of-funds threshold is built into facility pricing for very short hold periods. The charge, if applicable, is stated in your facility agreement before signing. After day 28, no early repayment charge applies.
Partial overpayments
On a term loan, partial overpayments reduce your outstanding principal and can shorten your remaining term or reduce future instalments, depending on how the overpayment is applied — your facility agreement will specify which. On a Flex facility, any repayment reduces the balance and therefore reduces daily accrual immediately, with no restriction on amount or frequency.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required as standard. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How do Credicorp loan repayments work?, How is my Credicorp loan statement structured?.