Credicorp

Term

The term of a facility is the length of time over which the borrowing runs and is to be repaid. It can be measured in days, weeks, months or years. The term shapes both the repayment schedule and the cost: a longer term spreads payments but accrues more interest, while a shorter term concentrates repayment but limits the total interest paid.

What it is: The period over which a facility is borrowed and repaid.
Short term: A brief period — days, weeks or a few months.
Effect on cost: A shorter term means fewer days of interest, so less total cost.

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Short-term business lending

Short-term business lending has, by definition, a brief term — designed to bridge a gap and then be settled. Because the money is borrowed only briefly, the total cost in pounds is modest even though the annualised rate (the APR) can look high. The high APR is an arithmetic effect of annualising a short-period cost, not a sign of a large charge in pounds.

Business loan A business loan is borrowing taken out in the name of a company or LLP rather than an individual, repaid over an agreed term. Short-term business loans… Interest Interest is the charge a lender makes for the use of borrowed money, usually expressed as a rate. On short-term business lending interest is often charged… APR What is APR in the UK? Annual percentage rate expresses the yearly cost of borrowing as a single percentage, combining the interest rate with any… Drawdown Drawdown is the act of taking money from an agreed facility — turning available credit into funds in the business's bank account. On a revolving facility… Our vulnerable-customers page How Credicorp, a UK business lender, supports customers going through a difficult time — vulnerability policy and support routes. Early settlement Early settlement is repaying a facility before the end of its term. Where interest is charged on the outstanding balance, settling early reduces the cost… Establishment fee An establishment fee is a one-off charge for setting up a facility, separate from interest. It forms part of the total cost of credit and should be read… KIS (Key Information Sheet) A Key Information Sheet is a pre-contract summary that sets out the headline terms of a facility — the cost, the repayments and the key conditions — so a… BNPL (buy now, pay later) Buy now, pay later (BNPL) lets a customer split the cost of a purchase into instalments. In a business context, spreading the cost of bills over time is a… Asset finance Asset finance is a way of funding equipment, vehicles or machinery by spreading the cost over time, with the asset itself usually acting as the security… ICO (Information Commissioner's Office) The ICO is the UK's independent data-protection regulator, responsible for upholding information rights and enforcing UK GDPR and the Data Protection Act…

Choosing the right term

The honest principle is to match the term to the need: borrow for the shortest period that solves the problem. Where interest is charged on the outstanding balance, settling before the end of the term reduces the cost, because fewer days of interest accrue. A term dragged out longer than necessary simply adds cost.

Term and Credicorp

Credicorp's business lending to UK limited companies and LLPs is short-term, and interest is charged on the outstanding balance, so settling early reduces the cost. The exact term in days, the daily rate and the fees are published in the machine-readable references ai.md and llms-full.txt. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

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