Interest on all Creditcorp lending accrues daily. Each day, a small fraction of your annual rate is applied to the balance outstanding that day. This means the total interest you pay is directly linked to how much you owe and for how long.
Daily accrual on a Business Loan
On a fixed-term Business Loan, your repayment schedule is calculated at the outset based on the agreed rate and term. Because the rate is fixed and the schedule is set, your day-to-day accrual follows the amortisation curve built into your agreement. Early in the term, a larger proportion of each payment covers interest because the outstanding balance is higher; later payments pay down more principal. Your offer document shows the full schedule.
Daily accrual on Creditcorp Flex
Flex is more dynamic. Interest accrues only on the balance drawn on each day. If you draw £20,000 on Monday and repay £10,000 on Wednesday, interest for Monday and Tuesday is calculated on £20,000; from Wednesday it is calculated on £10,000. Repaying the full balance stops interest immediately. This makes Flex cost-efficient for short, sharp drawdowns.
Does Creditcorp Slice accrue daily interest?
No. Slice works differently: it spreads a single bill over three or four weekly instalments at a flat 6% fee. There is no day-to-day accrual on Slice — the total cost is fixed as a single percentage of the bill value, disclosed before you confirm the arrangement.
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: What fees does a Business Loan carry?, How does the Creditcorp Flex facility fee work?, Does a longer loan term cost more overall?