If your company has a stronger month, putting extra towards your Credicorp loan can be a sensible move. An overpayment is any amount above your scheduled repayment, and it goes towards reducing what you owe.
How an overpayment is applied
An extra payment normally reduces your outstanding capital. Because interest is charged on the capital still owed, lowering it can reduce the interest that accrues from then on, in line with your agreement. Your dashboard and statement will show the payment and the new balance.
- Reduces your outstanding capital
- Can lower the interest that accrues afterwards
- Shown on your statement and dashboard
Before you overpay
It is worth confirming how an overpayment will be treated on your specific facility, since the effect on a Credicorp Flex limit can differ from a fixed Slice advance. Our team can confirm whether an overpayment reduces your next payment, shortens your term, or restores Flex headroom.
Overpaying versus settling early
An overpayment is a partial extra payment; settling early means clearing the whole balance. If your aim is to close the loan entirely, see our guidance on paying your loan off early instead.
We lend only to UK limited companies and LLPs and take no personal guarantees.
See also: What happens as my loan approaches the end of its term?, Understanding the breakdown between capital and interest in your balance, Why has my balance changed when I have not borrowed more?.