When you repay a Credicorp facility ahead of schedule, interest accrues only up to the date of settlement — you do not pay interest for the remaining contracted term. However, depending on your facility type, an early-repayment charge (ERC) may apply to compensate for the foregone interest the lender had priced into the facility.
How is outstanding interest calculated on early settlement?
Interest on your facility is calculated on a daily or per-interval basis on the outstanding capital balance. When you request a settlement figure, the calculation runs to your proposed settlement date. Illustrative, not a quote: if you are six months into a twelve-month facility and settle in full, you pay interest for six months rather than twelve — but any applicable ERC is added to arrive at the total settlement amount.
What is an early-repayment charge and when does it apply?
An ERC is a contractually agreed charge triggered when you repay all or a defined portion of the outstanding balance before the scheduled end date. Not all Credicorp products carry an ERC — your offer letter will state clearly whether one applies, over what period, and how it is calculated. A common structure is a fixed number of days' interest or a percentage of the outstanding balance at the time of settlement. Where an ERC applies for the first 28 days after drawdown, it is shown as a separate line in your cost-of-credit summary.
How do I get an early-settlement figure?
Contact your Credicorp account manager or submit a request through the client portal. Settlement figures are valid for a stated number of days — typically five to ten business days. Payment must be received in cleared funds before the expiry of the figure; if it lapses you will need to request a new calculation.
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: Are there fees to settle my business loan in full?, Is there an arrangement fee on a business loan?.