Settling your Credicorp facility in full before the contracted end date means you pay interest only to the settlement date. Depending on your product, an early-repayment charge (ERC) may also be added. Your offer letter confirms whether an ERC applies and how it is calculated — always check this before planning a settlement.
What does a full-settlement figure include?
A settlement figure typically comprises: the outstanding capital balance; accrued interest to the proposed settlement date; any early-repayment charge applicable under your agreement; and any administration fee for producing the settlement statement, where charged. Illustrative, not a quote: for a £30,000 outstanding balance with 15 days of accrued interest and a small ERC, the total settlement figure could be marginally above the capital balance — your personalised figure will show each component separately.
How do I request a settlement figure?
Log in to the client portal and use the settlement-request function, or contact your account manager directly. Settlement figures are valid for a defined period (typically five business days); if you do not settle within that window, you will need a new figure. Payment must be made in cleared funds — BACS or CHAPS — to the account details shown on the figure.
What happens after I settle?
Once cleared funds are received and confirmed, your facility is closed and you will receive a settlement confirmation letter. If any direct debit was in place, it will be cancelled. Keep your settlement confirmation for your records, as you may need it for accountancy purposes or if you apply for further finance in the future.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What happens to interest if I repay my business loan early?, How is the total cost of borrowing shown on my offer?.