You are free to pay more than your contracted monthly instalment at any time. When we receive a payment above the scheduled amount, we apply the excess directly to your outstanding capital balance, which reduces the base on which daily or monthly interest is calculated. This means future instalments cover more capital and less interest, shortening the life of the loan.
How to make an overpayment
Send a faster payment or CHAPS transfer using your unique loan reference as the payment reference. The sort code and account number are shown in your portal under Make a payment. There is no need to notify us in advance for overpayments below 25% of the outstanding balance — we will apply the funds and send you a revised repayment schedule within two business days.
Early repayment charges
Most of our standard business term loans carry an early repayment charge (ERC) if you repay the entire balance within a defined period — typically the first year of the facility. Partial overpayments that fall short of full settlement are generally ERC-free, but check your specific facility agreement for the exact position. If you want to settle in full, request an early settlement figure through the portal first so you know the precise amount due, including any applicable charge (illustrative — actual ERC terms vary by product and drawdown date).
Impact on your payment schedule
- Overpayments reduce the term by default — your monthly instalment stays the same and you finish sooner.
- If you would prefer a lower monthly instalment rather than a shorter term, contact servicing and we can restructure the schedule.
- Your Direct Debit continues to collect the original contractual amount until you or we update the mandate.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How do I get an early settlement figure?, What happens if a payment fails?.