APR stands for Annual Percentage Rate. It is a standardised way of expressing the yearly cost of borrowing as a single percentage, bringing together the interest and certain costs of a facility into one figure that is easier to compare.
What APR includes
APR is designed to reflect more than the headline interest rate alone. It takes account of how and when interest is charged and certain costs that form part of the borrowing, presented over a yearly basis. Because of this, two facilities with the same interest rate can show different APRs if their structures differ.
- It is a comparison tool, not a fee in itself.
- The exact rate that applies to your company is the one shown in your offer.
- It does not predict charges that depend on your own choices, such as late payment.
A note for business borrowers
APR conventions were built mainly around consumer credit. Credicorp lends only to UK limited companies and LLPs for business purposes, which sits outside the FCA consumer-credit regime. We still aim to be clear about cost, so your offer sets out the rate and terms that apply to your facility.
If anything about the cost of your Credicorp Flex or Credicorp Slice facility is unclear, ask our team before you accept.
See also: A plain-English glossary of business-lending terms, What is a tariff of charges?, What is yield on a loan?.