Yes, most Credicorp facilities carry an arrangement fee. The fee covers the cost of underwriting, credit assessment, and setting up your facility. It is expressed as a percentage of the approved loan amount and is confirmed in your offer letter before you accept.
When is the arrangement fee collected?
In most cases the arrangement fee is deducted from the loan proceeds on the day of drawdown, so the net amount credited to your company's bank account is the facility amount minus the fee. Your offer letter will show both the gross facility and the net advance so you can plan your cash flow accordingly. Illustrative, not a quote: on a £50,000 facility with a 2% arrangement fee, your company would receive £49,000 on drawdown.
Is the arrangement fee refundable if I do not draw down?
If you receive and accept an offer but subsequently choose not to draw down the funds, the arrangement fee is generally not payable because it is collected at drawdown. However, if a reservation or commitment fee has been charged to hold funds for a set period, that may be non-refundable — your offer letter will make this clear. If you withdraw before accepting the offer, no fee is due.
Is the arrangement fee included in the cost of borrowing figure?
Yes. The total charge for credit shown in your offer documentation includes the arrangement fee alongside all interest and any other charges payable over the term, giving you a clear picture of the full cost. This figure is illustrative of the agreed term and repayment schedule, not a projection of early settlement.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How is the total cost of borrowing shown on my offer?, Are there fees to settle my business loan in full?.