The total cost of credit is everything you pay on top of the amount you borrow: the interest plus any fees. On a single Credicorp agreement, that total is capped at 100% of the principal. In plain terms, you can never repay more than double what you borrowed — whatever happens.
What the cap includes
The cap covers interest and fees on that agreement, including the establishment fee and any late fee. There is no separate charge that sits outside it and no penalty interest rate that could push past it. Because there is also no compounding, the worst case is fixed and knowable from the day you sign.
Why we set a hard cap
Short-term credit can spiral when charges stack on charges. A hard cap removes that risk entirely: it puts an absolute ceiling on the cost of a single loan so a difficult few weeks can never turn a small loan into a large debt. It is one of the protections we apply voluntarily, even though this is unregulated business lending.
The cap applies to a single agreement. If you take out more than one loan, or a new loan after clearing an old one, each agreement has its own cap. Repeatedly re-borrowing is not a way to make credit cheaper — if you find you need to, please talk to us, because there may be a better-fitting option.
For the full breakdown of interest and fees, see what a Business Loan costs, and why; for what happens to the cap if you fall behind, see what happens if a payment is missed. Because this is lending to a company for business purposes, it sits outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS.
See also: Are there fees for paying off my facility early?, Can my rate or charges change during the term?, Do you charge any hidden fees?.