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Interest cover = operating profit / interest payable. Lenders watch it to check profit comfortably covers interest.
Step 1 — tidy and check your credit file
Pull your business credit score, correct any errors, and settle overdue supplier accounts. Late payments and CCJs push the margin up. A clean file is the fastest lever.
Step 2 — file up-to-date, healthy accounts
Lenders price off filed and management accounts. File on time, avoid abbreviated accounts that hide strength, and have recent management figures ready to show trading is healthy.
Step 3 — demonstrate strong interest cover
A high interest coverage ratio reassures the lender the loan is comfortably affordable. Work yours out with the interest cover calculator and lead with it.
Step 4 — offer security or reduce the ask
Useful security lowers the lender’s loss-given-default and can cut the margin. So can borrowing a little less, or over a slightly shorter term, to strengthen the affordability picture.
Step 5 — get quotes and negotiate the margin
Get more than one quote and negotiate the margin, not the reference rate. A competing offer is your best leverage.
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.
Frequently asked questions
Can I really change the rate I am offered?
You can move the margin, which is the part priced to your risk. The reference rate is fixed by the market. A stronger profile earns a thinner margin.
How long does improving my credit take?
Correcting errors can be quick; building a track record of on-time payments takes months. Start before you need to borrow, not when you apply.
Does offering security always cut the rate?
Often, because it reduces the lender’s risk. But it puts an asset on the line — weigh the saving against what you are pledging.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.