Yes, in almost all cases a longer term means more total interest paid, even if the periodic repayment amount is lower. This is because interest accrues on the outstanding balance across more days, so the cumulative cost rises with the length of the agreement.
The cashflow versus total-cost trade-off
A shorter term concentrates repayments, which can strain monthly cashflow but minimises total interest. A longer term reduces the amount due each period, easing cashflow pressure, but you pay interest for longer and the overall cost of the facility is higher. Neither option is universally better — it depends on your company's revenue pattern and how much breathing room you need month to month.
How Credicorp presents the comparison
Your offer document shows the full repayment schedule, including the total amount payable and the total interest element, for the term you have applied for. If you want to compare how different terms affect overall cost, ask your relationship manager for illustrative schedules across two or three term lengths before you commit. There is no charge for requesting alternative illustrations.
Does this apply to Flex and Slice?
Credicorp Flex does not have a fixed term in the same sense — you draw and repay against a revolving limit, and interest accrues daily on your drawn balance. Total cost therefore depends on usage patterns rather than a scheduled term. Credicorp Slice always spans three or four weekly instalments at a flat 6% fee; there is no variable-term option for Slice.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Comparing total cost across Credicorp products, How does interest accrue day to day?, Does settling early actually save money?