Early repayment means paying back some or all of what you have borrowed before the end of the agreed term. Businesses choose to do this when cash flow allows, often to reduce the overall cost of borrowing or to clear a commitment sooner.
The two forms
- Partial early repayment — paying off a portion of the balance, reducing what remains.
- Full early settlement — clearing the entire balance and closing the facility.
What to check first
Because interest typically accrues on the outstanding balance over time, repaying early can reduce the total interest you accrue. Before doing so, it is worth checking your agreement to understand exactly how an early repayment is applied and whether any conditions attach to it. The figures specific to your facility are shown in your offer and account.
If you are thinking about repaying early, you can ask us for a settlement position so you know exactly where you stand before deciding.
Credicorp lends only to UK limited companies and LLPs for business purposes. The terms for early repayment on your Credicorp Flex or Credicorp Slice facility are set out in your agreement. If anything is unclear, ask our team before you act.
See also: What is an early repayment charge (ERC)?, What is an early repayment charge? and The early-settlement charge, explained.