If your company has cash to spare — a large invoice settled, a strong quarter — putting a lump sum against your Credicorp balance reduces what you owe and, on an interest-bearing facility, the interest you pay from that point on. Here is how to do it properly.
Making the overpayment
- Decide the amount and check it is spare. Only overpay money the company genuinely does not need for its normal outgoings and buffer — an overpayment is not a payment holiday, and it does not remove the next scheduled collection unless we agree that.
- Tell us how you want it applied. An overpayment can either reduce your term (you finish sooner) or reduce future payments (each collection gets smaller). Say which you want — see does an overpayment reduce my payment or term.
- Send it by transfer with the right reference, or ask us to take it, then confirm it has been applied to the balance. See paying by bank transfer.
How it lands on your account
On an interest-bearing loan an overpayment reduces the principal, so less interest accrues day to day from then on — see how overpayments are applied and how overpayments are handled on a business loan. If you are thinking of clearing the whole thing rather than part, request a settlement figure instead, as that is the exact amount to close the facility.
Credicorp lends to companies rather than to you personally, so this is business finance outside the consumer-credit regime. That does not change the practical steps below.
See also: Can I pay extra towards my balance?, Making a partial overpayment, Paying ahead to build a buffer.