A temporary pause on repayments — sometimes called a payment holiday or breathing-space period — is something we can consider in genuine cases of short-term difficulty. It is not a standard feature of every loan facility, but it is a tool we can apply when the circumstances justify it and when the business has a credible path back to normal payments.
When a payment pause might be agreed
We are most likely to agree a pause where the difficulty is clearly temporary and externally caused: a major debtor has gone into administration leaving a significant invoice unpaid, a contract has been delayed through no fault of the borrower, or a one-off operational crisis has hit cash flow hard for a defined period. We will look at your payment history with us, the strength of your underlying business, and the information you provide about the cause and expected duration of the difficulty.
What happens to interest during a pause
Interest does not stop accruing during a payment pause. The effect is that your total repayable amount increases, and the deferred payments — together with the interest that has accrued on them — will be added to the remaining schedule or collected as a lump sum at the end of the pause, depending on what we agree. This means a pause is best suited to truly short-term gaps rather than a sustained reduction in business income.
How to request a pause
Contact our business support team as early as possible — ideally before the payment you cannot make is due. Explain the cause, the expected duration, and share any supporting information (for example, the insolvency notice of a non-paying debtor, or confirmation of a delayed contract). We will respond in writing with either a confirmation of a pause or an alternative suggestion.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What options are there if my company cannot pay this month?, How do I tell Credicorp my business is struggling?.