Why does short-term finance show such a high APR?

APR annualises a cost as if it were held for a whole year and compounded. A small flat fee held for a few days or weeks, when stretched over a full year and compounded, produces a very large percentage — even though the actual pounds-and-pence cost is modest. APR was designed to compare year-long consumer credit; it flatters long products and penalises short ones. For short-term business finance, compare the real cash cost in pounds, not the APR.

What is the difference between the simple rate and the APR here?

The simple annualised rate takes the flat fee, expresses it as a fraction of the amount borrowed, and scales it up pro-rata to a full year (fee ÷ principal × 365 ÷ days). The APR does the same but assumes the cost compounds every period across the year, which pushes the figure higher on short terms. Both are shown so you can see the gap. Neither changes the actual amount you repay.

How does this relate to Credicorp's pricing?

Credicorp's Business Bridging Loan and Flex facility are priced at 0.25% a day on the outstanding balance, and Credicorp Slice charges a flat 6% fee. Whichever way the cost is expressed, the total cost of credit is capped at 100% of the amount borrowed. Use this converter to see any flat fee in annualised terms, and the cost calculators to see the exact pounds you would repay.

Do the figures leave my browser?

No. Everything you type is calculated in your browser and nothing is sent anywhere, stored, or logged. There is no sign-in. Results are illustrative — your actual terms are confirmed by the lender at credicorp.co.uk.

Calculator

Flat fee to APR.

A big APR does not mean a big bill. This converter turns a flat fee held over a number of days into an annualised rate — so you can see why short-term finance shows a huge APR while the actual cost in pounds stays small. Compare the cash cost, not the headline percentage. General information, not advice.

Amount borrowed

Flat fee % of the amount

Held for days

Fee in pounds—
Simple annualised rate—
APR (compounded)—

—

The simple rate scales the fee pro-rata to a year (fee ÷ amount × 365 ÷ days). The APR compounds that cost across the year, which is why it is larger on short terms. Neither figure changes the actual amount you repay — that is the amount plus the fee. General information only; not a quote.

Apply at credicorp.co.uk → Cost a Slice bill → Cost a Bridging Loan →

Want the plain-English version? Read what is APR and why short-term lenders use a daily rate, or see the hard ceiling on cost in the 100% cost cap.

New to the terms? The glossary defines APR and the daily-rate model in a line.