2 min read
The core question
A fixed rate locks your payment; a variable rate moves with the base rate. The decision comes down to one question: could you comfortably afford the payment if the rate rose? See fixed vs variable rate.
When it matters most
On long-term debt, certainty is valuable and a rate move has years to compound. On short-term working capital you hold the money briefly, so the choice matters far less. Match the decision to the term.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is a fixed rate more expensive?
Often it starts a little higher because you pay for certainty, but that can pay off if rates rise. On short-term finance the difference is usually small.
Which is better for short-term finance?
The choice matters less, because you repay quickly and a rate move has little time to bite. Certainty is far more important on long-term borrowing.
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