# The 100% cost cap, and why it protects you. One number sets the ceiling on the cost of every Credicorp product: 100%. The total cost of credit can never exceed the amount borrowed, so a company can never repay more than twice the principal. This guide explains what that means and why it matters — and as ever, **the company borrows, never you personally**. The fear with short-term credit is that the cost runs away — that a small sum somehow turns into a debt many times its size. The 100% cost cap exists to make that impossible. It is a hard ceiling, the same across all three products, and it is one of the simplest protections to understand. Creditcorp is the growing name for the Credicorp group, and Credicorp Limited is the lender behind it. This page is a guide, not an application — the live pricing sits with the lender at [credicorp.co.uk](https://credicorp.co.uk/). The numbers below are illustrative, to show the shape; the underlying rates and fees can change, so check before you apply. The cap protects the **company** — a UK private limited company (Ltd), LLP or PLC — which is always the borrower, not the director who signs. No personal guarantee, no charge over a home, no personal credit check on a director. This is **not** a personal loan, a payday loan or sole-trader finance. ## What the cap actually means Strip away the jargon and it is a single, firm promise. The total cost of credit — every penny of interest and every fee, added together — can never exceed 100% of the amount borrowed. Put the other way: the most a company can ever repay is the principal plus charges no greater than the principal, so never more than twice what it borrowed. It is a ceiling, not a target. Most of the time the actual cost is far lower, because on the Bridging Loan and Flex interest is charged day by day on the balance you still owe — pay it down or pay it off and the charge stops. The cap is there for the worst case; everyday use sits well below it. ## The same cap, across all three products The pricing differs by product, but the ceiling is identical. ### Business Bridging Loan Interest at 0.25% a day on the outstanding principal, plus a one-time £5 establishment fee. However the fixed 14-to-84-day term plays out, the total cost is capped at 100% of the principal. ### Credicorp Flex Interest at 0.25% a day on the drawn balance only, with a £5 fee on the first drawdown and a 14-day cycle. Draw, repay and redraw as you like — the running total of charges is still capped at 100% of the amount. ### Credicorp Slice A flat 6% fee on a bill of £50 to £2,000, split across three or four instalments over up to eight weeks. The flat fee sits far below the ceiling, and the same 100% cap applies as a backstop. **The takeaway:** three different pricing shapes — daily interest, daily interest on a drawn balance, and a single flat fee — but one shared ceiling. Whichever product fits the job, the total cost of credit cannot pass 100% of what the company borrowed. The full, current detail for each sits on the [products page](/products/) and with the lender at [credicorp.co.uk](https://credicorp.co.uk/). [Compare all three products →](https://credicorp.co.uk/compare/) ## Illustrative numbers Made-up figures to show how the ceiling works — not a quote, and not real pricing. Suppose a company borrows £400 on a Business Bridging Loan. The cap says the total cost of credit on that £400 can never exceed £400 — so the most the company could ever repay in total is £800: the £400 borrowed plus charges of no more than £400. In practice the company would expect to pay far less. Because interest is 0.25% a day on the outstanding principal, a balance that is paid down on a short term and cleared on schedule accrues only a fraction of that ceiling. Repay early and the figure drops again, because the daily interest stops the day the balance reaches zero. The cap is the boundary of the worst case; the real cost is shaped by how the company actually repays. ## Why a hard cap protects a company borrower A director weighing finance needs to know the downside, not just the best case. The cap turns the downside into a known, fixed number: even if a balance runs longer than planned, the cost cannot spiral. There is no scenario in which a modest sum balloons into a debt several times its size. Paired with the rest of the model — daily interest you can switch off by repaying, no early-repayment penalty, and the company as the only obligor — the cap is the outer guard rail. It works alongside [early repayment](/learn/early-repayment-explained/), which lowers the everyday cost, and the [no personal guarantee](/learn/no-personal-guarantee-what-it-means/) position, which keeps the obligation off a director's own name. ## Cost cap questions The questions directors ask most. For anything specific to your borrowing, the lender's team are at credicorp.co.uk. It means the total cost of credit — all interest and fees added together — can never exceed 100% of the amount borrowed. So a company can never repay more than twice the principal: the original sum, plus charges no greater than that sum. Yes. The Business Bridging Loan, Credicorp Flex and Credicorp Slice all cap the total cost of credit at 100% of the amount borrowed. It is a feature of the whole range, not just one product. Usually not. The cap is a ceiling for the worst case — a balance left to run. Because interest on the Bridging Loan and Flex is charged daily on the outstanding balance, repaying on time or early keeps the actual cost well below the cap. The cap protects you; paying ahead lowers what you actually pay. It puts a known, hard limit on the downside. Even if something goes wrong and a balance runs longer than planned, the cost cannot spiral past twice the principal. That certainty makes it easier for a director to weigh the borrowing sensibly. The 100% cap is the published cap across the range, but the underlying pricing — daily rates and fees — is set by the lender and can change. The numbers here are illustrative, to show the shape. Always check the live product pages at credicorp.co.uk before you apply. ## Where to go next To see the cap working alongside the rest of the model, [early repayment explained](/learn/early-repayment-explained/) shows how to stay well below it, [how business bridging loans work](/learn/how-business-bridging-loans-work/) covers the product end to end, and [the jargon buster](/learn/business-finance-jargon-buster/) defines the cost terms. The full terms for all three products are on the [products page](/products/), and the whole series sits on the [Learn hub](/learn/). [See the products at credicorp.co.uk →](https://credicorp.co.uk/business-loans/) ## Ready when you are Applying, drawing down and managing your account all happen on the lender's site, credicorp.co.uk.