2 min read
Definition
Representative APR is the annual percentage rate a lender advertises, which — by the CONC rules the FCA applies to regulated consumer credit — must be available to at least 51% of consumers accepted for that product. It bundles interest and compulsory fees into one annualised figure. Business lending to a limited company is exempt from these rules, but the concept is still the fairest way to compare quotes.
In plain terms
It stops lenders advertising a rate only a lucky few ever get. If the headline says 9.9% representative APR, most accepted borrowers see 9.9% or something close, not a rate reserved for one perfect applicant.
Why it matters for your company
When you compare business finance, ask each lender to express the deal as an APR including every fee, then benchmark against the representative figure. Read how representative APR is set and use the loan comparison calculator.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
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