Paying off a loan early is a good thing and we want it to save you money. Because interest is charged only for the days you actually hold the balance, settling early stops the rest of it. There is one thing to know about a one-time Business Loan: an early-settlement charge can apply.
What the charge is
On a one-time Business Loan, settling early can carry a charge of up to 28 days' interest. It exists because a short loan repaid almost immediately would otherwise cover none of the cost of setting it up. In practice we waive it in many cases, and where it does apply it is modest.
Whenever you ask for a settlement figure, the exact amount to clear the loan today — including any early-settlement charge, or showing none if it is waived — is presented to you before you confirm. You never settle early and then discover a charge afterwards.
How it compares to carrying on
Even with the charge, settling early is usually cheaper than running the loan to term, because you stop the remaining daily interest. The settlement figure makes the comparison concrete: it is the all-in amount to finish today. If it is not the right time, you can simply keep to your schedule.
What about Flex and Slice?
Credicorp Flex and Credicorp Slice work differently. You can repay a Flex drawing early with no early-settlement charge, and with Slice the unused part of the fee is refunded if you settle ahead of the final instalment.
To see your settlement figure, sign in to your portal. For the wider pricing picture see what a Business Loan costs, and why. 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?.