When you take a one-time Business Loan, a single £5 establishment fee is added to set the loan up. People sometimes worry that a "fee" means a hidden or repeating charge, so here is exactly what it is and is not.
What it covers
The establishment fee covers the cost of opening the agreement — running the identity and anti-money-laundering checks, preparing your Business Loan Agreement and Key Information Sheet, and setting up the repayment schedule. It is a one-off, charged when the loan is established.
What it is not
- It is not a monthly or annual fee — it is charged once per loan.
- It is not taken if you apply and decide not to proceed, or if we cannot lend.
- It is not separate from the cost cap — the fee sits inside the total cost of credit, which is capped at 100% of what you borrow.
The £5 fee appears as a line in your Key Information Sheet and in your repayment figures before you sign, and again on your statement of account. Nothing is added that you have not already seen.
On Credicorp Flex, the equivalent one-off fee is charged on your first drawing rather than per draw after that — see how charges work on Flex. For the full picture of what a loan costs, 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?.