An early repayment charge, often shortened to ERC, is a cost that can apply when a borrower repays some or all of a facility before the end of the agreed term. Not every facility carries one, and where it does, the conditions are set out in the agreement.
Why such a charge can exist
When a facility is agreed, both sides plan around a term. Repaying early changes that, and an early repayment charge is one way the cost of that change can be reflected. Whether it applies, and in what circumstances, depends entirely on the terms of your particular agreement.
- Some facilities allow early repayment without any such charge.
- Others may apply a charge only in certain conditions.
- Your agreement is the place to check what applies to you.
Check before you repay
If you are thinking about repaying early, ask for a settlement position first. That way you can see the full picture, including any charge that applies, before deciding. The figures specific to your facility are shown in your offer and account, never a number we would quote in general.
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. Ask our team if anything is unclear.
See also: What is an early repayment charge?, What is early repayment? and The early-settlement charge, explained.