Every Credicorp offer letter contains a total charge for credit (TCC) — a single figure representing the sum of all interest, fees, and charges you will pay over the contracted term if you make every scheduled repayment on time. This gives you an at-a-glance comparison of the full cost rather than having to add individual line items yourself.
What is included in the total charge for credit?
The TCC covers: all interest calculated at the agreed rate over the full term; the arrangement fee; any other mandatory fees specified in the agreement (for example a documentation fee). It does not include charges that are conditional on your behaviour, such as late-payment fees or the cost of requesting a settlement figure, because those depend on circumstances that may not arise.
Why does the TCC differ from the arrangement fee plus interest?
If your facility charges interest on a reducing-balance basis, the interest component is higher in early months and lower later, meaning the simple sum of rate × balance × months can differ from an amortised schedule. The TCC reflects the correct amortised total. Illustrative, not a quote: on a £40,000 twelve-month reducing-balance facility, the TCC might be lower than multiplying the monthly rate by the opening balance for twelve months, because each repayment reduces the balance on which interest is charged.
How is the cost expressed as a rate?
Business lending is not required to express cost as an APR in the same way consumer credit is. Your offer letter will state the interest rate (monthly or annual) alongside the TCC in pounds sterling. This gives you both a rate for comparison and an absolute cost for budgeting. If you need help interpreting any line in your offer, your account manager can walk through each component with you.
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: Is there an arrangement fee on a business loan?, Are there fees to settle my business loan in full?.