Yield is a term used to describe the return a lender earns from lending money over a period. It is essentially the lender's-eye view of what a loan generates relative to the amount lent.
Yield from the lender's side
For a lender, yield combines the interest and any charges earned across a facility, set against the funds advanced. It is a way of expressing how a loan performs as part of a lending portfolio.
- It reflects the income a facility produces over time.
- It is a lender's measure, not usually how a borrower thinks about a loan.
- It is influenced by the rate, term and how the loan is repaid.
What a borrower should focus on instead
As a borrower, the more practical figures are the rate shown in your offer and the total amount repayable over your term. These tell you what the borrowing costs your company, which is what matters for planning.
Credicorp lends only to UK limited companies and LLPs for business purposes. We do not quote rates or returns here; the figures specific to your facility are in your own offer. Credicorp is an exempt business lender, so the Financial Ombudsman Service and FSCS do not apply.
See also: Funding a marketing campaign that pays back over time, What does it mean to be in arrears? and A director's loan to your own company: tax and legal points.