The true cost of short-term finance — arrangement fee, rolled interest and exit fee — and how much actually lands in your account on day one.
The facility
£
months
% / mo
Fees
Added to the loan on drawdown.
%
Charged on redemption.
%
Total cost of finance
—
Cost of loan
—
Net on day one
—
Arrangement fee—
Interest over term—
Exit fee—
Total finance cost—
Monthly payment (if serviced)—
Redeem at exit—
Rolled interest is added at the end; retained is deducted from the advance up front; serviced is paid monthly. Rates are quoted per month — always check whether interest compounds.
How this is calculated
Interest = gross × monthly rate × term (simple, non-compounding).
Arrangement & exit fees are % of the gross loan.
Net day one = gross − arrangement − (retained interest, if retained).