Interest on Creditcorp Flex is charged only on the balance you have drawn at any given time. If you have a £60,000 limit but have drawn only £20,000, interest accrues on £20,000 — not the full limit. Undrawn capacity does not attract interest charges.
How accrual works day to day
Interest accrues on a per-interval basis against your outstanding drawn balance. As you repay, the balance falls and interest accrues on a smaller figure. As you draw more, the balance rises and interest accrues accordingly. Your account statement will show accrued charges broken down by period so you can see exactly what has built up.
When interest is collected
Accrued interest is collected at the intervals set out in your facility agreement — typically monthly. The exact collection date and method will be confirmed in your facility terms. Interest is not compounded within a collection period; you are charged on the drawn balance during that interval.
Keeping costs predictable
Because you only pay interest on what you draw, you can manage the cost of Flex by keeping repayments timely and drawing only what you genuinely need. Paying down the balance ahead of an interest collection date reduces the charge for that period. Your account dashboard shows your current balance and accrued interest so you can plan accordingly.
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: Can I repay and redraw my Flex balance?, What happens if I do not use my Flex facility?.