New in c3: Support for flat-interest loan models

What’s new?

Lenders on our latest c3 v.26_04.25 release can now offer loans with flat interest models, with monthly or weekly repayment schemes, and an option to make the final repayment a balloon payment.

With this type of facility, interest is calculated up-front on the entire principal and divided equally across all repayments. The repayment schedule is established when the loan is created and remains static throughout the term. Missed payments, late payments, overpayments and ad-hoc disbursements do not affect future repayment amounts or dates.

Flat-interest loans can be offered as a bolt-on to a client’s invoice finance facility – something we encourage IF lenders to consider.

For more information on how flat-interest loans work in c3, visit our release note library.

Why flat-interest loans?

Our new support for flat-interest loans is part of our ongoing investment to expand our support for ABL finance products. In our August 2026 release for c3 Edge, we’ve also added the option to show borrowers a simplified ‘loan-only’ view in e3.

What’s driving our ABL strategy? Lender and borrower demand.

Since 2020, we’ve seen a steady increase in the number of invoice finance lenders seeking to diversify their offering with loans – including providing loans as a bolt-on to IF products. This shift is in response to the ongoing popularity of loans as a fast, simple form of business finance, with many SME’s having their first experience of loan products in the COVID crisis. In 2025 growth in business loans outpaced growth in asset finance volumes for the first time since 2020 (British Business Bank) – with two thirds of business lending coming from challenger banks or non-bank lenders (British Business Bank).

What else do I need to know?

Our new flat-interest loan functionality is available to all lenders running c3 Edge, in our August 2026 24.05 release. If this includes your business, our Customer Success team will be in touch shortly to arrange your c3 update.

If you’re a Dancerace lender running our c3 Standard version and would like to upgrade to c3 Edge to benefit from our enhanced loan functionality and other advanced features, click here to find out how.

Finally; if you’d like information on our latest platform updates every month, subscribe to our release note newsletter here.