Payment difficulty

Late payment from a major customer is one of the most common reasons a perfectly healthy company suddenly cannot cover an outgoing. The work is done, the invoice is out, but the money has not arrived and a loan payment is due in the meantime.

What to do straight away

Tell us as soon as you can see the gap coming, ideally before the payment date. A timing problem caused by a delayed receipt is exactly the kind of short, defined gap that a brief arrangement is built for.

• Let us know the expected date the customer payment will land.
• Ask about a short payment holiday to bridge the gap.
• Confirm whether the receipt is delayed or genuinely at risk, as that changes the right plan.

Bridging a defined gap

If you can show that the money is coming and just running late, we can often align a short pause or adjustment to the date you expect it. The aim is to get you over the gap without it turning into arrears. We will set out any effect on your balance and the rate shown in your offer first.

If the receipt is at risk

If the customer payment might not come at all, that is a bigger issue than timing, and it is worth seeking advice on recovering the debt and protecting your company's cash flow. Talk to us either way so we can plan around the real situation rather than the hoped-for one.

See also: Can I pause payments if my company hits a cash-flow gap?, What can my company do when customers pay late? and Funding payroll between customer payments.

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Getting a message from a debt collection agency is alarming, and it is exactly the kind of moment scammers try to exploit. So here is the honest picture: when an account would ever reach a third party, how to tell a genuine contact from a scam, and — most usefully — how to take the account back into your own hands by talking to us first.

When — and whether — an account ever reaches a third party

Our strong preference is to resolve things directly with you. A third party only becomes a possibility after an account has been left in arrears, with us unable to reach an agreement and contact attempts going unanswered — and even then it is a last resort, not an automatic step. There is no fixed trapdoor and nothing happens behind your back: we would always rather agree something workable than escalate.

Two situations take escalation off the table entirely:

• You are in an active arrangement. If we have agreed a repayment arrangement, a payment freeze or a hardship variation, we hold collection activity while that plan is running.
• You have asked for extra care. If you have told us you need extra support, we will not pass your account to a third-party debt collector while that flag is active — see how to tell us you need extra support.

How to check a contact is genuine — and not a scam

Debt-collection pretexts are a favourite cover story for fraudsters, because urgency and a little fear make people act before they think. A genuine contact and a scam behave very differently, and a few simple checks settle it.

1. We tell you in advance, and in writing. If a third party were ever going to contact you, we would let you know first, in writing, who they are. A collector arriving out of the blue with no prior word from us is a reason to stop and verify, not to pay.
2. We never tell you to move money to a "safe account". There is no such thing as a "safe account". Anyone — claiming to be us, a collector, or your bank — who tells you to move money to protect it is running a scam, full stop.
3. We never pressure you or demand secrets. A genuine contact does not threaten you into paying within minutes, and never needs your full card number, PIN, online-banking password or a one-time code. See how Credicorp will — and won't — contact you.
4. Check independently before you act. Do not use a link or phone number from the message itself. Go to credicorp.co.uk yourself, sign in, and check, or contact us through the official site. A real matter will still be there; a scam falls apart the moment you check it. The tell-tale signs of a fake message are in recognising phishing and smishing.

The 100% cost cap still applies — even in collections

Escalation does not change the price of the loan. The total cost of a single loan stays capped at 100% of what you borrowed — you will never repay more than double the amount borrowed on one loan, whether the account is on track, in arrears, or with a collector. There is no penalty-rate uplift for falling behind: interest does not jump or compound because an account has been escalated, and a third party cannot add charges that breach that cap. Many high-cost lenders let default charges balloon past the principal once an account is "in collections" — we do not, and the cap holds throughout.

How to bring the account back on track

The most powerful thing you can do is talk to us first. Almost any account heading toward escalation can be steadied with an arrangement, and asking for one is sensible, not a black mark.

• A repayment arrangement. A reduced-payment plan or a short payment freeze reshapes the schedule around what the business can manage — see what a repayment arrangement is and how to set one up.
• A payment extension. If only a single due date is the problem, a short payment extension may be all you need.
• A hardship variation. For longer-term difficulty — a lost contract, a downturn, an unexpected cost — a hardship variation changes the terms more substantially so the plan is sustainable.

Use the Payment Arrangement Request form, or tell us through your portal or by phone. Telling us you are struggling, or asking about an arrangement, is not a penalty and is not reported to credit reference agencies as a missed payment — and once a plan is in place, the account stays with us. For the wider picture, see what happens, step by step, if a payment is missed.

Free, independent help

You do not have to work this out alone, and independent advice is free. Business Debtline gives free, impartial debt advice to the self-employed and small businesses (businessdebtline.org, 0800 197 6026). For personal money worries, the government-backed MoneyHelper (moneyhelper.org.uk) and Citizens Advice (citizensadvice.org.uk) can both help. Getting advice never affects how we treat your account, and it often makes an arrangement easier to agree. For the full list of services, see where to get free, independent debt advice in the UK.

See also: Can my accountant or another representative deal with you on our behalf?, Can my company make a partial payment if it cannot pay in full?, Can I pause payments if my company hits a cash-flow gap?.

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Yes, a formal payment plan can be arranged. We are a business lender, not a debt collector, and a structured plan that keeps your company trading and repaying is in everyone's interest. Payment plans are not granted automatically — they require an application and review — but we approach them positively when the difficulty appears temporary or manageable.

How to request a payment plan

Contact our business support team and explain your situation. We will ask for some supporting information: typically recent management accounts or bank statements, an up-to-date debtor schedule if relevant, and a brief explanation of what has caused the difficulty and how long you expect it to last. You do not need a formal insolvency practitioner involved at this stage; many plans are agreed directly between us and the company's director.

What a payment plan looks like in practice

A plan might involve reduced monthly payments for a defined period — say three to six months — after which normal instalments resume and any shortfall is redistributed across the remaining term. As an illustrative, not-a-quote example, a facility with 18 months remaining might move to half-payments for four months, with the deferred amounts spread across the final 14 months. Interest continues to accrue during any reduced-payment period, so the total cost of the facility increases slightly.

Will a payment plan appear on my credit file?

A formally agreed and documented payment plan that we have confirmed in writing is treated differently from unmanaged arrears. We will reflect the agreed arrangement in our credit reporting. Payments made in line with a confirmed plan are not reported as missed payments. This is one of the strongest reasons to contact us and formalise any arrangement before payments actually fall behind.

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: How do I tell Credicorp my business is struggling?, Will a missed payment affect my company credit file?.

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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?.

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A payment extension gives you a little extra time on a single payment when a one-off event — an unexpected bill, a delayed wage — means the due date is difficult.

An extension is best suited to a short, temporary gap rather than an ongoing shortfall. If your business is likely to find several payments difficult, a longer-term arrangement is usually the better route, and we can talk that through with you.

Please request an extension before the payment is due, using the Payment Extension form. We will confirm the new date and any effect on your schedule in writing. If money is tight more broadly, see what to do if you are struggling to pay and our hardship and forbearance process.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can my company make a partial payment if it cannot pay in full?.

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Cash-flow gaps are a normal part of running a company, especially around late customer payments or seasonal swings. If your company hits one, a short, agreed pause may be possible. The key word is agreed: pausing without telling us is treated very differently from pausing with us.

When a pause makes sense

A pause is most useful when the difficulty is genuinely temporary and you can see when normal cash flow will return. If the gap is short and the cause is clear, that is exactly the kind of situation a short arrangement is built for.

What a pause involves

• We look at your company's situation and how long it realistically needs.
• We agree what happens during the pause and how the paused amount is handled afterwards.
• We confirm the arrangement so you have it in writing.

What a pause is not

A pause is not the same as the debt going away. The agreed amount is still owed and will need to be brought back into the schedule. We will be clear about how interest at the rate shown in your offer continues to apply, so there are no surprises.

How to ask

Contact us before the gap bites, explain the timing, and tell us what your company can manage in the meantime. Whether you hold Credicorp Flex or Credicorp Slice, the earlier you raise it, the more flexibility we can offer.

For the practical differences, see payment holiday versus reduced payment plan, forbearance options for business borrowers and why early contact helps.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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You do not have to face a payment-difficulty conversation alone or even handle it personally. Many companies prefer their accountant, a debt adviser, or another director or colleague to deal with us, and that is completely fine once the right authority is in place.

Who you might appoint

• Your accountant or bookkeeper, who already knows the company's finances.
• A free debt-advice organisation such as Business Debtline.
• An insolvency practitioner if matters are more serious.
• Another director or an authorised member of your team.

How to set it up

So we can talk to someone other than the named contact, we need clear authority from the company confirming who may act on its behalf. This protects your business by making sure we only discuss the account with people you have approved. Contact us and we will explain exactly what we need to record the authority.

What this does and does not change

Appointing a representative changes who we communicate with, not the substance of the arrangement. The loan remains the company's, and any plan is still agreed on the company's behalf. We do not take personal guarantees from directors, so a representative is dealing with a corporate liability. Having a trusted adviser in the conversation often makes reaching a sensible plan quicker and less stressful.

See also: Can I give my statement to my accountant or bookkeeper?, What happens if I break a payment arrangement we agreed?, Can someone help me manage my account?.

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If your company cannot meet a full payment this month, a partial payment is usually far better than skipping it entirely. It keeps the balance moving, shows good faith, and limits how far the account drifts.

Why paying something helps

A partial payment reduces what is owed, slows the growth of the balance, and demonstrates that the company is engaging. It also gives us a clear signal that you are working to stay on top of things rather than letting the account slide.

Do it as part of an arrangement

• Talk to us first so the partial payment is recorded against an agreed plan.
• We can note how the shortfall will be made up over time.
• This avoids a partial payment simply being logged as a missed full payment.

What a partial payment does not do

A partial payment does not, on its own, change the agreement or stop interest applying at the rate shown in your offer. The remaining amount is still owed. That is why pairing it with an agreed arrangement matters: it turns a one-off short payment into a managed plan.

How to arrange it

Contact us, tell us what the company can pay this period, and we will help set it up correctly. The same approach works for both Credicorp Flex and Credicorp Slice. The goal is steady progress the business can actually maintain.

For related support, read how we decide on a payment arrangement, what happens when a company falls into arrears and free business debt advice organisations.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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Sometimes a company's cash position improves suddenly, perhaps a big invoice finally lands or an asset is sold. If that happens, a lump sum can be a powerful way to deal with arrears. The key is to apply it deliberately rather than just sending money and hoping.

What a lump sum can do

• Bring the account fully up to date, clearing the arrears in one move.
• Reduce the outstanding balance and ease future payments.
• Close the account early, where your agreement allows.

Confirm how it will be applied

Before sending a lump sum, talk to us so it is allocated the way you intend. Without that, a payment might be split across the schedule differently from what you expect. A quick conversation makes sure the money does exactly the job you want it to.

Ask about early repayment

If you are thinking of settling the whole balance, ask us for the figure to do so and how interest at the rate shown in your offer is handled on early repayment. We will set this out clearly for your specific agreement.

Same for both products

This applies to both Credicorp Flex and Credicorp Slice. A lump sum used well can take real pressure off the company, so it is worth a short call to get it right.

Related difficulty articles cover what happens when your company falls into arrears, how we decide on a payment arrangement and getting back on track after arrears.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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It is a fair question and one worth answering plainly. The general principle is that your agreement continues to apply while the account is in arrears, including how interest is charged.

The general position

Interest is calculated according to the terms of your agreement at the rate shown in your offer. Falling behind does not switch that off. The outstanding balance continues to be subject to the terms you signed up to, which is one reason resolving arrears sooner usually costs the company less overall.

What an arrangement can change

• An agreed arrangement gives the company a clear path back, rather than letting the gap drift.
• We can explain exactly how interest applies during any pause or reduced-payment period.
• In some hardship situations we can look at how charges are handled, depending on your circumstances.

Why speed matters

The longer an account stays behind without an arrangement, the more the balance can grow and the fewer options remain. Getting something agreed quickly keeps the cost contained and the situation manageable.

Get the specifics for your account

The exact figures depend on your agreement and your product, whether that is Credicorp Flex or Credicorp Slice. Contact us and we will set out precisely how interest is being applied to your company's account so you can plan with full information.

For planning the next step, see making a partial payment if you cannot pay in full, how we decide on a payment arrangement and what happens when your company falls into arrears.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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The Debt Respite Scheme, usually called Breathing Space, gives individuals in England and Wales a period during which most creditor action and interest is paused while they get debt advice. It is a useful tool, but it is designed around personal debt, not company borrowing.

Why it generally does not cover a Credicorp loan

Credicorp lends only to UK limited companies and LLPs, and the loan sits with the company rather than with any director personally. Breathing Space protects an individual's qualifying debts. A loan owed by a limited company is a corporate liability, so it falls outside the personal scheme.

• The borrower is the company, not the director.
• We do not take personal guarantees from directors, so there is no personal debt to protect.
• Statutory Breathing Space moratoria apply to the individual who enters them, not to a separate legal entity.

What support you do have

Even though the statutory scheme is not the right route, that does not leave your company without options. We can agree our own breathing space in practice, pausing or adjusting payments while you take advice or steady your trading. If a director has separate personal financial difficulty, the statutory scheme may help them in their own right, and a debt adviser can confirm that. Talk to us early so we can find the right path for the company.

See also: Glossary: Breathing Space, Does FSCS protection cover my Credicorp facility? and ID verification when you apply.

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The best time to deal with repayment difficulty is before it actually arrives. Companies rarely run out of road overnight; there are usually signals weeks ahead. Learning to read them lets you act while options are widest.

Cash-flow signals

• Customer payments are arriving later than they used to.
• You are increasingly relying on the buffer to cover routine costs.
• You are timing supplier payments more tightly each month.

Trading signals

• A major customer or contract has been lost or is at risk.
• Order volumes are softening without a clear seasonal reason.
• Margins are being squeezed by rising input costs.

Behavioural signals

If you find yourself avoiding the bank balance, putting off financial admin, or feeling uneasy about an upcoming payment, treat that instinct as data. It often means part of you has already spotted a problem.

What to do when you see them

Do not wait for certainty. Run a quick projection of the next few months, and if any payment looks tight, contact us to plan ahead. Acting on an early warning, whether your borrowing is Credicorp Flex or Credicorp Slice, almost always means a calmer, cheaper outcome than waiting for the difficulty to land.

Useful next steps include contacting us early about cash-flow pressure, building a simple cash-flow forecast and free business debt advice organisations in the UK.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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Talking to us is one source of support, but it is healthy to get independent advice as well, especially if your company is facing pressure from more than one creditor. Several reputable UK organisations offer free, impartial help, and seeking it is a sign of good management rather than weakness.

Where to start

• Business Debtline, run by the Money Advice Trust, gives free and confidential debt advice to self-employed people and small businesses across the UK.
• Citizens Advice offers general guidance and can point you to specialist help.
• The Insolvency Service publishes clear information on company options if difficulties become serious.
• Licensed insolvency practitioners can advise on formal company procedures, and an initial conversation is often free.

What good advice looks like

A good adviser will look at your whole position, not just one debt, and help you prioritise. They will not pressure you into a particular product and they will explain the trade-offs of each route in plain terms.

Because Credicorp lends to limited companies and LLPs for business purposes, you are outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply. That makes independent business-focused advice all the more worthwhile. We are happy for you to take advice and will work alongside any reputable adviser you appoint.

See also: Where can my company get free, independent business debt advice?, How we support directors in vulnerable circumstances and Where can I get free, independent debt advice in the UK?.

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Plenty of companies fall behind at some point and recover well. Arrears are a phase to work through, not a permanent mark. The goal is to get your account back to its normal rhythm in a way the business can actually sustain.

Stabilise first

The first job is to stop the gap growing. That usually means agreeing a temporary arrangement so the company is paying something steady while it recovers, rather than nothing at all. Stability buys you the room to rebuild.

Clear the backlog at a realistic pace

• Agree how the missed amount will be caught up over time.
• Set a pace that fits your company's real cash flow, not an optimistic one.
• Build in a margin so an ordinary bad month does not knock you off course.

Return to your normal schedule

Once the backlog is under control, the aim is to move back to your agreed repayments at the rate shown in your offer and over your agreed term. We will confirm with you when the account is considered back on track.

Stay in touch as you recover

If your recovery is bumpier than hoped, tell us early rather than risk slipping again. Whether you hold Credicorp Flex or Credicorp Slice, ongoing contact is what keeps a recovery on track. A company that communicates is one we can keep working with.

See also: What are arrears?, What actually happens if my company misses a Credicorp repayment? and How arrears affect your company's future borrowing with us.

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Breathing Space, formally the Debt Respite Scheme, is a government scheme in England and Wales that gives an individual in problem debt a legal period during which most creditor action and interest are paused while they receive debt advice.

What it does

During a Breathing Space, qualifying creditors generally cannot add certain interest or charges or take enforcement action on the protected debts. It is entered through a debt adviser, not applied for directly, and is intended to give a person room to get back on their feet.

• It protects an individual's personal qualifying debts.
• It is time-limited and accessed through advice.
• There is a standard route and a separate mental health crisis route.

Why it usually does not cover a Credicorp loan

Credicorp lends only to limited companies and LLPs, and the loan belongs to the company as a separate legal entity. We do not take personal guarantees from directors. Breathing Space protects individuals, so a corporate liability generally falls outside it. A director with separate personal debt difficulties may still benefit from the scheme in their own right. Even though the statutory scheme rarely applies to company borrowing, we can agree our own informal breathing space while you take advice.

See also: Arrears (glossary), Glossary: holding company and Does the Breathing Space scheme apply to my business loan?.

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Default is the point at which a borrower is treated as having seriously breached the terms of their agreement, usually by failing to make payments over a sustained period rather than missing one payment by a few days.

Default is not the same as a single missed payment

Missing one payment puts your account into arrears, which is a problem to address but is recoverable. Default is a more serious stage that follows continued non-payment and a lack of engagement. There is normally a path of contact and warnings before any account reaches that point.

• Arrears: one or more payments behind, but the agreement continues.
• Default: a formal recognition of serious, ongoing breach.
• The gap between the two is where engagement matters most.

How to avoid it

The most reliable way to avoid default is to talk to us early and agree an arrangement before arrears build. A company that is engaging and keeping to a plan is not heading towards default, even if it is paying less than usual for a while.

Because Credicorp lends to limited companies and LLPs for business purposes, a default relates to the company's agreement. We do not take personal guarantees from directors, so default sits with the company. If you are worried about reaching this stage, contact us straight away.

See also: Glossary: default (business lending), Glossary: forbearance, Glossary: vulnerability.

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Forbearance means the steps a lender takes to give a borrower temporary relief when they are finding it hard to keep up with repayments. Rather than pressing straight for the full amount due, the lender agrees a short-term change to help the borrower through the difficult period.

In practice

For a company borrowing from Credicorp, forbearance might take the form of a payment holiday, a period of reduced payments, rescheduling the balance across the agreed term, or a formal plan to clear arrears in stages. The right form depends on what caused the difficulty and what the company can realistically afford.

• It is temporary, not a permanent write-off of what is owed.
• It is agreed between borrower and lender, not imposed.
• It usually has some effect on the balance, the rate shown in your offer, or the term, which we always explain first.

Why it matters

Forbearance recognises that a fundamentally sound business can hit a rough patch. Used well, it bridges a gap so the company recovers rather than slides into deeper trouble. The key to accessing it is early contact, because the sooner a lender knows, the more options remain open. Credicorp lends to limited companies and LLPs for business purposes, so any forbearance is a commercial arrangement outside the consumer-credit regime.

See also: Glossary: default, Glossary: vulnerability, Glossary: Breathing Space.

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Vulnerability describes a situation where someone is at greater risk of harm, particularly when a difficulty arises, because of their circumstances. It is not a fixed label and can be temporary or longer lasting.

What it can look like

Vulnerability can stem from health, a life event, resilience or capability. In a business context it usually affects the people behind a company, such as a director dealing with serious illness, a bereavement, mental health pressures, or a sudden personal shock that makes running the business harder than usual.

• Health: a diagnosis, disability, or mental health condition.
• Life events: bereavement, relationship breakdown, caring duties.
• Capability or resilience: reduced ability to manage finances at a difficult time.

Why it matters to us

When a director tells us about a vulnerable circumstance, we can adjust how and when we communicate, give more time for decisions, involve an authorised representative, and pause pressure while things settle. Sharing this is voluntary and there is no disadvantage in doing so. While business lending sits outside the FCA consumer-credit regime, we still believe in handling these situations with genuine care, because the people running a company deserve no less.

See also: Glossary: forbearance, Glossary: default, Glossary: Breathing Space.

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Cashflow does not always behave. A late-paying customer, a lost contract or a quiet season can make a repayment hard to meet. If that is where you are, you are in the right place — and the most useful thing you can do is talk to us early. We would far rather agree a workable plan than chase a missed payment, and asking for help never counts against your company's future eligibility.

Talk to us first — before a payment is missed

A failed Direct Debit can cost your company a bank fee and triggers our missed-payment fee, so heading one off saves money as well as worry. We review requests within one working day, and Direct Debit collections are paused while a request is open. The quickest routes are the request forms on our main site:

• Set up a payment arrangement
• Request a payment extension
• Ask for a hardship variation (payment freeze, reduced payments, a longer plan)

Prefer to talk it through? Email payments@credicorp.co.uk with your reference number, and a real person will help. You can read more about each option in what a repayment arrangement is and how to set one up.

Our policies

These set out, in full, how we handle payment difficulty and what we will and will not do:

• Hardship & Forbearance Policy
• Default & Arrears Policy
• Responsible Lending & Affordability Policy

For a plain-English walk-through, see our hardship and forbearance process.

Free, independent advice

You do not need our permission to get independent advice, and it costs you nothing. For a company in difficulty:

• Business Debtline (businessdebtline.org, 0800 197 6026) — free, independent advice on business debt, run by the Money Advice Trust.
• Federation of Small Businesses (FSB) (fsb.org.uk) — support and resources for small businesses.

For a company in serious difficulty, options such as a Company Voluntary Arrangement, administration, or an HMRC Time to Pay arrangement may be relevant — an insolvency practitioner or accountant can advise.

If the difficulty is affecting a director personally — health, bereavement, or money worries at home — free help is also available from StepChange (stepchange.org), Citizens Advice (citizensadvice.org.uk), National Debtline (0808 808 4000) and MoneyHelper (moneyhelper.org.uk). If you would like us to apply extra care, tell us and we will. For the full list, see where can I get free, independent debt advice in the UK?.

If you are unhappy with how we have handled things

Please tell us. Email complaints@credicorp.co.uk, or use the support tab in your portal and tick “This is a complaint”. We acknowledge complaints within three business days and aim to give a final response within eight weeks. Our full Complaints Procedure explains each step.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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Companies often worry that a period of arrears closes the door on borrowing again. The honest answer is more nuanced: arrears are taken into account, but how you handled them matters at least as much as the fact they happened.

What we look at later

• Whether you engaged with us when difficulty hit.
• Whether an arrangement was agreed and kept.
• How the company's overall position has developed since.
• The current health and trading of the business.

Handling difficulty well counts in your favour

A company that hit a rough patch, talked to us early, agreed a sensible plan, and saw it through demonstrates exactly the kind of responsible management we want to see. That track record can support a future application more than an unblemished but untested history.

What works against you

Going silent, breaking arrangements without warning, or letting an account escalate all weigh more heavily than the original difficulty. The behaviour around the arrears is the real signal.

No guarantees, but no permanent black mark

Every future application for Credicorp Flex or Credicorp Slice is assessed on its own merits at the time. Past arrears are part of the picture, not an automatic refusal. Resolving them properly is the best thing you can do for your company's future options.

See also: Will asking for help affect my company's ability to borrow from you again?, Will a late or missed payment affect my company's future borrowing? and Getting your company back on track after arrears.

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If you have dealt with a personal loan or credit card, you may expect certain consumer protections to apply here too. Because Credicorp lends only to limited companies and LLPs for business purposes, the framework is different, and it is worth being clear about what that means.

What does not apply

• The Financial Ombudsman Service handles consumer complaints and does not cover this business lending.
• The Financial Services Compensation Scheme does not apply.
• Statutory consumer schemes such as personal Breathing Space are built around individual debt, not company borrowing.

What still applies

The absence of the consumer regime does not mean an absence of support. We still work constructively with companies in difficulty, offering forbearance such as payment holidays, reduced payments, and rescheduling. We treat directors in vulnerable circumstances with care, and we encourage independent business debt advice.

Why the distinction matters

Knowing the framework helps you direct concerns to the right place and seek the right kind of advice. For business borrowing, independent advice from organisations such as Business Debtline is often more relevant than consumer-focused services. We also do not take personal guarantees from directors, so the loan and any difficulty arrangement sit with the company. If anything here is unclear, ask us and we will explain how it applies to your agreement.

See also: Does the Breathing Space scheme apply to my business loan?, Will missing a payment affect the directors personally?, What is an exempt business lender?.

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The most important step is to contact us early. Businesses that reach out before they miss a payment almost always have more options available than those who wait until arrears have built up. You can reach our business support team by email or phone — details are on your loan agreement and in the client portal. There is no judgement and no penalty for simply telling us that things are tight.

What to tell us

You do not need a full recovery plan before you pick up the phone. Tell us what has changed — a lost contract, a slow-paying customer, a VAT bill that has landed at the wrong moment — and roughly how long you expect the pressure to last. The more context you can share, the faster we can assess what flexibility is available on your facility.

What happens after you contact us

A member of our business support team will review your account and the information you have provided. We may ask for recent management accounts, a short cash-flow projection, or an update on your debtor book. This is not an interrogation — it is so we can see the full picture and work out whether a revised repayment schedule, a short breathing-space period, or another arrangement makes sense for your company. We will always confirm any agreed changes in writing before they take effect.

Why early contact matters

Missed payments are recorded and can affect your company credit profile. A conversation with us before a payment is missed gives us the opportunity to make a formal arrangement that protects your record. Once payments fall into arrears without prior agreement, our options narrow and the impact on your company's credit file is harder to avoid.

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?, Can a payment plan be arranged if my business is struggling?.

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Most repayment difficulty is predictable if you look ahead. A simple cash-flow forecast is the single most useful habit for staying in control. You do not need accountancy software; a spreadsheet and an honest eye will do.

Map the next few months

List the weeks or months ahead. For each one, write down the cash you expect to come in and the cash you expect to go out, including your loan repayments. The aim is a rolling picture, not a perfect one.

Be honest about timing

• Use realistic dates for when customers actually pay, not when invoices are due.
• Include every committed outgoing, even the easy-to-forget ones.
• Add a small buffer for the unexpected.

Look for the pinch points

Where the running balance dips low or goes negative is where payment pressure will hit. Spotting these in advance is the whole point. A pinch point three months out is a planning problem; the same pinch point on the day is a crisis.

Act on what you see

If a forecast shows a repayment looking tight, that is your cue to contact us early and discuss options before it bites. Whether you hold Credicorp Flex or Credicorp Slice, a forecast turns nasty surprises into manageable conversations.

See also: Can I pause payments if my company hits a cash-flow gap?, Warning signs your company may be heading for payment trouble and Why contacting us early about cash-flow pressure helps your company.

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You do not need a perfect plan before you contact us, but a little preparation makes the conversation more useful. The more clearly you can describe your company's position, the quicker we can find something that works.

Have these to hand

• Your account or agreement reference.
• A rough picture of your company's current cash position.
• What is causing the difficulty, and whether it is temporary or longer-term.
• When you realistically expect money to come in.
• What size of payment your company could manage in the meantime.

Think about what you are asking for

It helps to have a rough idea of the outcome you want. That might be a short pause, a smaller payment for a few months, or a change to the payment date. You do not have to commit to anything on the call, but a starting point speeds things up.

Be honest about the worst case

If things could get worse before they get better, say so. We can plan for that far more effectively than for a rosy picture that does not hold. We are not looking to catch you out; we are trying to keep your company on track.

After the call

Make a note of what was agreed and any next steps. Whether you hold Credicorp Flex or Credicorp Slice, having your own record keeps everyone aligned.

See also: What should I have ready before talking to you about payment difficulty?, How we decide on a payment arrangement for your company and Building a thirteen-week cashflow forecast.

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If the company is finding a repayment hard to meet, a repayment arrangement reshapes what you owe into a schedule the business can actually manage — a reduced-payment plan, a short payment freeze, or a longer hardship variation. This page is the practical walkthrough: the exact steps to set one up, what to have ready before you start, and what to check once it is agreed. For the wider picture of what an arrangement is, see what a repayment arrangement is and how to set one up.

Before you start: what to have ready

You do not need to prepare a formal file — a rough picture of the company's cash flow is enough. It helps to have in mind: roughly what the business can afford to pay each month right now, when reliable income tends to land, and how long you think the tight period will last. If you already know the shape you want — a smaller payment for a while, a short freeze, or a longer change — say so. If you are not sure, that is fine: we will work it out with you.

Setting it up, step by step

The whole process is designed to be quick and judgement-free. Here is exactly how it goes from first contact to a confirmed new schedule.

1. Get in touch before the payment is due. Use the Payment Arrangement Request form, message us from your portal, or call us. Reaching out before a collection date is the key step — it keeps everything in "arrangement" territory rather than "missed payment" territory.
2. Tell us what the business can manage. Give us an honest picture of the company's cash flow: roughly what it can afford to pay now, and when income reliably arrives. You do not need exact figures or paperwork to begin — a realistic estimate is enough for us to start shaping a plan around what the business can actually sustain.
3. Agree the shape of the arrangement. Together we pick what fits. A reduced-payment plan lowers each payment for a period while cash flow recovers. A short payment freeze of 30 or 60 days gives genuine breathing space. A payment extension handles a single awkward due date. A hardship variation changes the terms more substantially for longer-term difficulty. If you have asked us for extra care, a freeze can be arranged without the usual eligibility checks.
4. We confirm the new schedule in writing. Once we agree, we set out the new schedule clearly so you know exactly where you stand — the revised amounts, the dates, and how long the arrangement runs. Your live, exact figures always sit in your signed-in portal; this help centre stays figure-free on purpose so nothing here ever contradicts your account.
5. Check it has taken effect, and keep us posted. After it is in place, sign in and confirm your schedule now reflects the arrangement before the next collection date. If the company switched the way it pays — for example moving a Direct Debit — make sure the new instruction is set up so nothing slips through. If anything changes, for better or worse, tell us early so we can adjust again.

If your circumstances change after it is set up

An arrangement is not set in stone. If the business recovers sooner than expected, you can return to the normal schedule or clear the balance early — interest is only charged for the days you actually hold the balance, so settling early stops the rest. If things get tighter instead, tell us before the next payment is due and we can look at the arrangement again. The rule is the same throughout: talk to us early, and there is no penalty for asking.

Free, independent help

Sometimes the most useful step is to speak to someone independent and free. Business Debtline (businessdebtline.org, 0800 197 6026) gives free, impartial debt advice to small businesses, and MoneyHelper (moneyhelper.org.uk) can help with personal money worries. Getting advice does not affect how we treat your account, and it often makes an arrangement easier to agree. If your circumstances mean you need us to do things differently, see how to tell us you need extra support.

A note on how we are regulated: Credicorp lends to UK limited companies and LLPs, and a Business Loan is exempt from FCA consumer-credit regulation under Article 60C of the FSMA Regulated Activities Order 2001. The company is the borrower, there is no personal guarantee, and any arrangement is made with the company. Because this is exempt business lending, the Financial Ombudsman Service cannot consider a complaint about it; if you remain dissatisfied after our final response, the next step is independent advice or the courts.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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When you ask for a payment arrangement, we are not applying a rigid formula. We are trying to find something that the company can genuinely sustain while protecting the agreement. Understanding what we look at helps you put your best case forward.

What we consider

• The cause of the difficulty and whether it is temporary or structural.
• Your company's current and expected cash position.
• What level of payment the business can realistically keep up.
• How long the company needs before normal payments can resume.
• Your history of engaging with us.

What strengthens your case

Clear information helps enormously. If you can show why the gap happened and when it is likely to close, we can be more confident in a flexible arrangement. Engaging early and honestly counts for a lot.

It is a conversation, not a test

We are not looking for reasons to say no. A workable arrangement is good for the company and good for us, because it keeps the account performing. The aim is an outcome you can actually meet, not a number that sets you up to fail.

The same approach for both products

Whether your borrowing is Credicorp Flex or Credicorp Slice, the principle is the same: a realistic plan, agreed in writing, that gives the company a clear way through.

See also: How to prepare before you call us about payment trouble, Can my company request a payment holiday? and How lenders assess a business loan application.

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Running a company does not insulate anyone from difficult personal circumstances. Serious illness, a bereavement, mental health pressures, caring responsibilities or a sudden life event can all affect the people behind a business. When that happens, we want to know so we can adjust how we work with you.

What counts as a vulnerable circumstance

There is no fixed list. It can be temporary or longer lasting, and it might affect the person who normally handles the company's finances. Examples include a health diagnosis, a recent bereavement, the breakdown of a relationship between directors, or a period where decision-making is genuinely harder than usual.

How our approach changes

• We can give you more time to respond and avoid pressuring you for quick decisions.
• We can communicate in the way that works best for you, and with an authorised colleague or representative if you prefer.
• We can pause or slow collections activity while things settle.
• We can point you towards independent support relevant to your situation.

Telling us is voluntary and there is no disadvantage in doing so. We record only what we need to give you the right support and treat it sensitively. While business lending sits outside the FCA consumer-credit regime, we still believe in handling these situations with care. Reach out through your account or your agreement contact details.

See also: Where can my company get free, independent business debt advice?, Looking after yourself while running a business in difficulty and Free business debt advice organisations in the UK.

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If you are finding it hard to keep up with payments, the most important thing is to tell us early. We would much rather help than see an account fall behind.

Depending on your situation we may be able to offer:

• a payment arrangement spreading what you owe over a manageable schedule;
• a short payment extension to give you breathing space;
• a hardship variation if your difficulty is longer term.

You can start any of these with our online forms — see the step-by-step guide to requesting a payment arrangement if you are not sure where to begin. For a fuller picture of the support available, see help if you are struggling to make a payment. We will always treat your situation sensitively. You can also talk to us about your situation directly.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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We want every customer to be able to deal with us comfortably. If you have a health condition, a disability, a recent bereavement, caring responsibilities, or anything else that affects how you would like us to communicate or what you can manage, please tell us.

Use the Additional Support Needs form. We will record your needs, handle them sensitively, and take them into account in everything we do — including pausing contact where appropriate.

See also: How we support directors in vulnerable circumstances, Glossary: vulnerability, Recording your accessibility preferences.

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When a company is under financial pressure, the people running it feel it personally. Sleepless nights, dread before opening the post, and the urge to avoid the problem are all common. None of that means you are failing; it means you care about the business.

Separate the worry from the work

The stress is real, but it does not solve anything on its own. The most reliable way to reduce the pressure is to take one concrete step, such as contacting us to discuss the account. Action shrinks anxiety in a way that worrying never does.

You are not the first

• Difficulty is a normal part of running a company, not a personal verdict.
• Talking to us early tends to make people feel more in control, not less.
• Sharing the load with a co-director, accountant, or adviser helps.

If it is affecting your wellbeing

If money stress is affecting your health, please reach out for support. Your GP, and organisations that support people under financial and emotional strain, are there for exactly this. Free, independent business-debt advice is also available and can lift a lot of the weight.

We are on the same side

Our team would far rather have a calm, honest conversation with you than leave you carrying this alone. Whether your borrowing is Credicorp Flex or Credicorp Slice, getting in touch is a step towards relief, not a confession of failure.

See also: Looking after yourself while running a business in difficulty, Managing payment difficulty on Credicorp Flex versus Credicorp Slice, What not to do when your company cannot pay.

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Credicorp offers two products, Flex and Slice, and they are built differently. That means the most natural way to ease payment difficulty can differ depending on which one your company holds. The underlying principle is the same: tell us early and we will find a workable plan.

If you hold Credicorp Flex

Flex is a more revolving, drawdown-based facility. Because of how drawings and repayments interact, easing pressure often involves looking at your drawing activity alongside your repayment schedule. We can discuss pausing or reducing repayments and how that interacts with what you have drawn.

If you hold Credicorp Slice

Slice follows a more structured repayment shape over your agreed term. Here, forbearance tends to focus on the schedule itself, for example a short payment holiday, a reduced-payment period, or rescheduling the remaining balance across the term.

What is common to both

• Early contact gives the widest set of options.
• We assess affordability and the likely duration of the difficulty.
• We explain any effect on your balance, the rate shown in your offer, and your term before agreeing.

You do not need to know the mechanics in advance. Just tell us which product you hold and what your company is facing, and we will explain how support works for that product. Both are business facilities for limited companies and LLPs, outside the consumer-credit regime.

See also: What forbearance options are available for business borrowers?, The difference between a payment holiday and a reduced-payment plan, Why contacting us early about cash-flow pressure helps your company.

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Plenty of UK companies earn most of their income in a few busy months and far less in the quiet stretch, whether that is a hospitality business outside the summer, a retailer after the festive peak, or a contractor between projects. Fixed repayments do not always sit comfortably against that rhythm.

Plan around the dip before it arrives

The best time to deal with a seasonal squeeze is before you reach it. If you know which months are tight, tell us in advance. We can look at adjusting your schedule so payments lean towards your stronger months rather than your weakest ones.

• Talk to us when you take out or review your facility about your trading pattern.
• Flag an approaching quiet period rather than waiting for a payment to strain.
• Consider building a buffer during peak months for the leaner ones.

If a quiet period bites harder than expected

Sometimes the dip is deeper or longer than forecast. If that happens, the same difficulty options apply: a short pause, a reduced-payment period, or rescheduling the balance over your agreed term. We will explain any effect on your balance and the rate shown in your offer before agreeing anything.

Credicorp Flex in particular can suit businesses with uneven income because of how drawings work, but both products can be discussed. As we lend only to limited companies and LLPs for business purposes, these are commercial arrangements tailored to how your company actually trades.

See also: Warning signs your company may be heading for payment trouble, Why contacting us early about cash-flow pressure helps your company, Early warning signs your company may struggle to repay.

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When your company needs short-term relief, two of the most common options are a payment holiday and a reduced-payment plan. They sound similar but work differently, and choosing the right one matters for your balance and your term.

A payment holiday

A payment holiday pauses one or more scheduled payments entirely for an agreed period. Nothing leaves your account during the pause. This suits a company facing a sharp but temporary gap, for example while waiting on a large invoice to settle.

• Payments stop completely for the agreed window.
• The paused amount is dealt with afterwards, usually by extending or rescheduling.
• Best for short, defined cash-flow gaps.

A reduced-payment plan

A reduced-payment plan keeps payments flowing but lowers them for a set period. This suits a company that can still pay something each month but not the full amount, for example during a slow trading season.

• You keep paying, just less, for the agreed period.
• It keeps momentum on the balance rather than pausing it.
• Best when some affordability remains.

Which is right for you

We will talk through your trading pattern and what is realistic, then explain the effect on your balance and the rate shown in your offer. Both options are available depending on your circumstances and whether you hold Credicorp Flex or Slice.

See also: Managing payment difficulty on Credicorp Flex versus Credicorp Slice, Can my company request a payment holiday?, What is a Debt Management Plan and how does it affect my loan?.

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The companies that come through a difficult patch best are usually the ones that saw it coming and acted early. Cash-flow trouble rarely arrives without warning, so it is worth knowing the signs that suggest a conversation with us would be wise sooner rather than later.

Signs worth watching

• You are increasingly relying on stretching supplier payment terms to get by.
• Your cash buffer is shrinking month on month with no clear recovery in sight.
• A major customer is paying later than agreed, or you are more dependent on a single client.
• You are using new borrowing to cover existing repayments rather than to grow.
• You find yourself choosing which bills to pay each month.
• A known quiet season is approaching and reserves are thin.

What to do if you recognise these

Noticing one or two of these does not mean your company is in crisis, but it is a prompt to plan rather than hope. The earlier you talk to us, the wider the range of options, from adjusting your schedule to a short payment holiday or rescheduling across your agreed term.

It is also a good moment to seek free, independent business debt advice so you see the whole picture. Credicorp lends to limited companies and LLPs for business purposes, and we would always rather have an early conversation than a late one. Reach out through your account or the contact details on your agreement.

See also: Early warning signs your company may struggle to repay, How do I spot the early warning signs of cashflow trouble? and What if my company can only pay part of this month's amount?.

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A Time to Pay (TTP) arrangement is a plan HMRC agrees with a company that cannot clear a tax bill — VAT, PAYE or Corporation Tax — in one go, letting you spread it over an agreed period instead. If you have one in place, or are about to ask for one, it is worth understanding how it interacts with what you owe us. The short version: a TTP is an agreement between your company and HMRC. It does not, by itself, change your Credicorp repayment. But it is a strong signal that cash is tight, and that is exactly the moment to talk to us.

A TTP does not pause your Credicorp payment

HMRC and Credicorp are separate creditors. Agreeing a payment plan with one does not automatically adjust the other, and we are not told when a TTP is granted. Your Flex or Slice repayment continues on its existing terms until we agree something different with you directly. So if committing to the monthly TTP figure leaves your company short on our repayment, do not assume the two cancel out — let us know.

Why telling us early helps

When you contact us, we can look at your Credicorp repayment alongside what you have agreed with HMRC, so the combined monthly burden stays realistic. Coordinating your creditors deliberately — rather than meeting one in full and quietly falling behind on another — is almost always the better outcome. Reaching out before a payment is missed keeps far more options open than waiting until the account is already in arrears.

What we may be able to do

• Look at a forbearance option — a short pause, a reduced payment for a period, or a longer arrangement — so your Credicorp payment fits around the TTP instalments.
• Set the size and timing of payments around when money realistically comes into the business.
• Record everything as an agreed plan, so a deliberately reduced payment is not logged as a simple missed one.

Any arrangement depends on your company's circumstances, and we will go through what is workable with you. See what forbearance options are available for business borrowers and how we decide on a payment arrangement for your company for the detail.

What to tell us

You do not need a polished plan first, but a few facts make the call quicker: that a TTP is in place or being applied for, the monthly amount and rough end date, what is driving the pressure, and what you could manage on your Credicorp repayment in the meantime. Our short guide on how to prepare before you call us about payment trouble walks through this. If your accountant is handling HMRC for you, they can deal with us too — see whether a third party or accountant can deal with us on your behalf.

One more point on the tax bill itself

For the TTP application, prepare your figures and contact HMRC's business payment support service directly; we cannot set up the tax arrangement for you. If the wider picture is difficult and you would value a second opinion, free and independent help is available — see free business debt advice organisations in the UK. As an FCA-exempt business lender we work with companies, not consumers, but the principle is the same across the board: a creditor that hears from you early can do far more than one finding out after the fact.

See also: A debt collection agency has contacted me - is it genuine?, Can I get a payment extension?, Can my company make a partial payment if it cannot pay in full?.

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'Arrears' is one of those words that sounds far more alarming than it is. In plain English it just means a payment that was due and has not been made — money you were scheduled to pay that has not yet reached us. This article explains what arrears actually are, how they differ from a one-off missed payment or a default, what we report and to whom, and the calm, practical steps to clear them. The headline: talking to us early is always the best move, and asking for help is never treated as a black mark.

What 'arrears' actually means

You are 'in arrears' when a scheduled payment has fallen due and not been paid. It is a description of where the account stands, not a charge or a penalty in itself. The amount in arrears is simply the sum of the payments you have missed and not yet caught up on.

It helps to separate three terms that often get muddled:

A missed single payment

One scheduled payment did not arrive — often a Direct Debit that bounced. On its own this is common and usually quick to fix, and it is the first thing that puts an account into arrears.

Arrears

The running total of payments due but not made. One missed payment puts you a little in arrears; several unaddressed missed payments mean the account is deeper in arrears. It is a balance, not an event.

A default

A formal, later step. A default is recorded only when an account has been in serious arrears for a sustained period and we have been unable to agree a way forward. It is not the same as missing a payment, and it does not happen the moment a payment is late. Crucially, simply telling us you are struggling is never recorded as a default.

So a single missed payment is the start of arrears; a default is a much later and more serious marker that we work hard to avoid with you. Most arrears never become defaults precisely because there is time to put a plan in place.

What we report, and whose credit file it touches

This is the part people worry about most, so let us be precise. We lend to your company — a limited company or LLP — not to you as an individual. The company is the borrower. That has a direct consequence for whose credit file is affected.

What this means in practice:

• Payments made on time build the company's record of good account management with the business agencies.
• Missed payments or arrears may also be reported against the company — which is one more reason to clear them or agree a plan early.
• The identity check we run on the signing director is a verification step to meet our anti-money-laundering obligations. It is not a personal lending search and is not recorded as one.

For the full detail on which agencies we use and exactly what is shared, see what Credicorp shares with business credit reference agencies. And for the wider answer on personal versus company credit, see will applying for a Credicorp loan affect my credit file.

Asking for help is not a default — and an agreed plan is not a missed payment

This matters, so it is worth stating plainly. Getting in touch to say a payment will be late, or to ask about an arrangement, is not reported to credit reference agencies as a default. There is no penalty simply for asking, and reaching out early does not count against you.

Better still, once we agree a way forward, the payments under that arrangement are not treated as missed payments. A repayment arrangement reshapes what you owe into something the business can manage — a reduced-payment plan, a short payment freeze, or a longer hardship variation — and while you keep to it, you are doing exactly what you agreed, not falling behind. See what a repayment arrangement is and how to set one up. The earlier you ask, ideally before a payment is due, the more room there is to help.

What happens, step by step, if a payment is missed

Knowing the sequence takes a lot of the fear out of it. Here it is in brief:

1. The payment doesn't arrive. Most often a Direct Debit bounces. We let you know. The best thing you can do is get in touch, ideally before the due date if you already know it will be tight.
2. A single late fee may apply — and nothing compounds. If a payment is genuinely missed, one late fee may be added for that payment. There is no penalty-rate uplift, and interest does not jump or compound because you fell behind.
3. The cost cap still protects you. The total cost of a single loan stays capped at 100% of what you borrowed — the cap holds through arrears, not just when everything goes to plan.
4. We try to agree a plan, not escalate. If a payment stays unpaid we will try to reach you to understand what is going on and agree a way forward, rather than letting the account drift into deeper arrears.
5. Extra protection if you have told us you need care. If you have asked for extra support, we will not pass your account to a third-party debt collector while that flag is active, and freezes and reduced-payment plans become available without the usual checks.

For the full walkthrough, see what happens, step by step, if a payment is missed.

How to clear arrears or agree an affordable plan

There are two routes out of arrears, and either is fine:

• Clear the arrears. If it was a one-off — a bounced Direct Debit, a timing problem — catching up the missed amount brings the account back on track. Use the Payment Arrangement Request form or get in touch through your portal or by phone.
• Agree an affordable plan. If keeping up has become genuinely difficult, we would much rather reshape the payments than escalate. A reduced-payment plan, a short payment freeze, or a hardship variation can fit the schedule around what the business can manage.

Free, independent debt advice

Sometimes the most useful step is to talk to someone independent and free, who is on your side rather than ours. Two trusted sources:

• Business Debtline — businessdebtline.org, 0800 197 6026. Free, impartial debt advice for small businesses and the self-employed, including help understanding arrears and dealing with business creditors.
• MoneyHelper — moneyhelper.org.uk. Free, government-backed guidance on money and debt, useful where personal and business money worries overlap.

Getting independent advice does not affect how we treat your account, and it often makes an affordable plan easier to agree. If your circumstances mean you need us to do things differently, see how to tell us you need extra support.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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Forbearance is the umbrella term for temporary changes we can make to help a company that is finding repayments hard. It is not a fixed product but a set of tools we draw on depending on your circumstances and which Credicorp product you hold.

Common forms of forbearance

• A short payment holiday where one or more scheduled payments are paused, with the balance picked up later.
• Reduced payments for a set period while your company's cash flow recovers.
• Rescheduling the remaining balance over your agreed term so each payment is more manageable.
• A formal arrangement to clear arrears in instalments alongside your normal payments.

How we decide what fits

We look at what caused the difficulty, whether it is short-term or likely to last, and what your company can realistically afford. The goal is a plan that is sustainable rather than one that simply postpones the pressure. We will be clear about any effect on your balance, the rate shown in your offer, and your term before anything is agreed.

Forbearance is available on both Credicorp Flex and Credicorp Slice, though the mechanics differ between the two. As we lend only to limited companies and LLPs for business purposes, these are commercial arrangements and the consumer protections of the Financial Ombudsman Service and FSCS do not apply.

See also: Glossary: forbearance, What forbearance support is available if my business is struggling?, Managing payment difficulty on Credicorp Flex versus Credicorp Slice.

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Directors come and go — through retirement, a fallout, ill health, or a planned handover. When this happens while a company is behind on its repayments, the natural worry is whether the loan somehow follows the person out of the door, or whether their leaving disrupts the account. It does neither. The clearest way to think about it is that the agreement was always with the company, and the company carries on.

The obligation stays with the company

Credicorp lends to your limited company or LLP for business purposes, not to any individual sitting behind it. A director is an officer of the company, not the borrower. So when a director resigns, the loan, the balance, the schedule and any arrears all remain exactly where they were — with the company. Nothing about the debt is cancelled, paused or reduced because a signatory has changed, and nothing transfers to the person leaving.

No personal liability follows the departing director

We do not take personal guarantees on Credicorp Flex or Credicorp Slice, so there is no personal liability for a director to "leave behind" or be released from in the first place. A resigning director does not take a slice of the company's arrears with them, and the directors who remain do not inherit a personal debt either. The liability is the company's throughout. (See also will missing a payment affect the directors personally?)

Who we then deal with

We deal with whoever has authority to act for the company. Practically, that means a remaining director, a newly appointed director, or an authorised member of your team. If the person who left was our day-to-day point of contact, the most useful thing you can do is tell us promptly who now speaks for the company, so reminders, calls and any arrangement reach the right person rather than going stale.

• Confirm the new or remaining contact for the account.
• Update the authorised signatory or account holder if that has changed.
• Let us know if an accountant or adviser will handle the conversation — you can authorise a representative to deal with us at any time.

A handover is the moment to re-engage, not go quiet

A change in the boardroom is exactly when an account can drift, because everyone assumes someone else is dealing with it. While the company is in arrears that gap matters. The remaining or incoming directors still have their normal duties under company law — including the duties that apply when a company is in financial difficulty — and those duties point the same way we do: deal with it openly and early. If you are not sure who internally should pick this up, see who to talk to inside Credicorp about payment difficulty.

What happens if no one steps in

If a director leaves and the company simply stops engaging, the arrears do not pause — the account continues along the normal path, and where nothing is resolved it can move toward formal recovery against the company. That action is directed at the company, never at a former or current director personally. As ever, it is almost always avoidable: a quick call from whoever now holds the reins is usually all it takes to keep the account on the support path.

This is business lending outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply, and our agreement with the company governs throughout. If a director has recently left and you want to confirm who we should be speaking to, contact us or raise it through the General Support Enquiry form — we would always rather sort the handover early than after things have drifted.

See also: A debt collection agency has contacted me - is it genuine?, Can I get a payment extension?, Can my company make a partial payment if it cannot pay in full?.

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An arrangement is a plan, and plans sometimes hit bumps. If your company cannot meet a payment under an agreement we set up, the most important thing is to tell us before the payment is due, not after it has been missed.

Why the arrangement matters

When we agree an arrangement, we hold off the normal chasing on the basis that the new plan will be kept. If a payment is missed without warning, that trust is what breaks first, and the account can revert to the standard recovery path.

What to do if you are about to miss one

• Contact us as early as you can, ideally before the due date.
• Explain what has changed since the arrangement was set up.
• Tell us what the company can realistically pay now.

Can the arrangement be changed?

Often, yes. If your company's circumstances have shifted, we can review the arrangement rather than simply tearing it up. An arrangement that no longer fits reality is not much use to anyone, so a revised, workable plan is usually the better outcome.

What to avoid

Do not let a missed arrangement payment slide into silence. That is what turns a small wobble into a serious problem. Whether you hold Credicorp Flex or Credicorp Slice, a quick call keeps your options open and your account on a manageable footing.

See also: How we decide on a payment arrangement for your company, What to do if you miss a payment on your Credicorp loan, What happens to my arrangement if my circumstances change again?.

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If a scheduled payment fails, we will attempt to collect it on the next working day and contact you to let you know. What happens next depends on how quickly you respond and whether an arrangement has been discussed in advance. A single missed payment that is resolved quickly, with communication from you, is treated very differently from a pattern of non-payment.

Immediate steps after a missed payment

You will receive a notification from us — by email and, if unresponsive, by phone. A late payment fee as set out in your loan agreement will be applied to your account. We will also make a formal note on your account. At this stage the situation is still very recoverable: paying the missed instalment promptly, or contacting us to agree an arrangement, stops the process from escalating.

Credit file impact

We report to commercial credit reference agencies. If a payment is more than 30 days overdue and no arrangement has been agreed, a late or missed payment entry is likely to appear on your company's credit file. This can affect your ability to obtain finance from other lenders. If you contact us before the payment is missed and we agree a formal arrangement in writing, we will reflect that arrangement in any reporting — meaning a managed payment plan is treated more favourably than an unmanaged arrear.

What happens if arrears are not resolved

Persistent arrears without engagement can lead to formal default, which may trigger acceleration of the outstanding balance under your loan agreement. At that point a debt-recovery process begins, which is more costly and disruptive for your business. This is why early contact is so important — once a default notice has been issued, the options available to us narrow considerably.

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: Will a missed payment affect my company credit file?, What options are there if my company cannot pay this month?.

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A forbearance arrangement is a plan for a moment in time, and business rarely stands still. Your company's position can improve faster than expected or take another hit. Either way, an arrangement can be revisited, and you should tell us rather than quietly drift off the plan.

If things improve

If trading recovers ahead of schedule, that is good news for everyone. You may be able to return to your normal payments sooner, or clear the deferred amount more quickly. Returning to a sustainable footing earlier usually reduces the overall cost of the difficulty.

• Let us know your cash flow has steadied.
• Ask about moving back to your normal schedule.
• Discuss clearing any deferred balance ahead of plan.

If things get harder

If the difficulty deepens, do not wait until you miss a reduced payment. Tell us, and we can look at extending the arrangement, lowering it further, or moving to a different option. Breaking an arrangement silently causes far more harm than asking to change it.

Keeping us in the loop

The principle is simple: an arrangement works when we both have an accurate picture. Update us when anything material changes and we will adjust the plan around it, explaining any effect on your balance, the rate shown in your offer, and your term. These are commercial arrangements with limited companies and LLPs, and flexibility is part of working with us.

See also: What to do if you can no longer keep to an existing arrangement, What happens if I break a payment arrangement we agreed?, How to set up a repayment arrangement, step by step.

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Arrears simply means your company is behind on what it agreed to pay. It is a status, not a verdict, and there are clear stages to it. Knowing the shape of the process helps you act at the right moment.

The early stage

When a payment is first missed, our priority is to make contact and understand what is going on. You will hear from us, and we will want to know whether this is a one-off or part of a wider squeeze on the company's cash flow.

The working stage

If the difficulty is ongoing, this is where most cases are resolved. We look at options together, which may include a temporary arrangement, a change to your payment schedule, or another form of support suited to your company's circumstances.

The escalation stage

• If we cannot make contact or no arrangement can be reached, the account moves further along the recovery process.
• This can eventually involve formal recovery steps against the company.
• Almost every escalation can be avoided by engaging with us before it gets there.

How to keep things in the early stage

Respond when we contact you, be straight about what your company can manage, and stick to what you agree. Because this is business lending outside the FCA consumer-credit regime, the Financial Ombudsman Service does not apply, which makes direct dialogue with us all the more important.

See also: What happens, step by step, if a payment is missed?, Can a company with arrears elsewhere still apply? and Funding stock for a brand-new product line.

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Missing a payment is stressful, and not knowing what happens next makes it worse. So here is the honest, step-by-step version — what we charge, what we do not, and how to stop it early. The short answer: there is no penalty spiral, and talking to us is always the best move.

1. The payment doesn't arrive

If a scheduled payment fails — most often a Direct Debit that bounces — we will let you know. A failed Direct Debit on its own is common and fixable; see what happens if my Direct Debit fails. The best thing you can do at this stage is contact us, ideally before the due date if you already know it will be tight.

2. A single late fee may apply — and nothing compounds

If a payment is genuinely missed, a single late fee may be added for that missed payment. Crucially, that is it: there is no penalty-rate uplift, and interest does not jump or compound because you fell behind. Default interest, where it applies, is charged at the same headline rate as the normal loan and stops once the balance is cleared. See will I be charged a fee if I miss a payment for the detail.

3. The 100% cost cap still protects you

No matter what happens with missed payments, the total cost of a single loan is capped at 100% of what you borrowed. You will never repay more than double the amount borrowed on one loan — the cap holds through arrears, not just when everything goes to plan. This is deliberate: many high-cost lenders let default charges balloon past the principal, and we do not.

4. We try to agree a plan, not escalate

If a payment is missed and stays unpaid, we will try to reach you to understand what is going on and agree a way forward. We would much rather set up a repayment arrangement than let an account drift into deeper arrears. If your difficulty is more than a one-off, an arrangement or a hardship variation can reshape the payments around what the business can manage.

5. Extra protection if you have told us you need care

If you have told us you need extra support, that changes how we behave: we will not pass your account to a third-party debt collector while the flag is active, and freezes and reduced-payment plans become available without the usual checks. See how to tell us you need extra support.

The one thing that always helps

Tell us early. Asking for help, or telling us a payment will be late, is not reported to credit reference agencies as a default, and there is no penalty just for asking. Persistent arrears can be reported against the company to business credit reference agencies, which is one more reason to sort it out early. Free, independent advice is available from Business Debtline (0800 197 6026). Start with the Payment Arrangement Request form.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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If your company has reached or is approaching insolvency — whether you are considering a Company Voluntary Arrangement (CVA), entering administration, or being wound up — you should notify us as soon as possible. Once a formal insolvency procedure begins, the conduct of your loan facility passes into the hands of the appointed practitioner and our direct contact with you as director may become restricted. Early disclosure gives both parties the best chance of an orderly outcome.

What to tell us if you appoint an insolvency practitioner

Tell us the name and firm of the IP you have appointed or are in discussions with, the procedure being considered (administration, CVA, liquidation), and the expected timeline. We will then liaise directly with your IP regarding the status of your facility. You should not make payments to us unilaterally once an IP has been appointed without their instruction, as this can constitute a preference and expose the payment to challenge.

Secured versus unsecured position

The treatment of our facility in an insolvency process depends on whether it is secured and the nature of any security taken. Your loan agreement will set out the security position. Unsecured creditors are generally in a lower priority class than secured creditors, HMRC preferential claims, and the costs of the insolvency process itself. Your IP will provide a creditors' report explaining the likely distribution, if any.

CVA and restructuring

If your company proposes a CVA, we may be invited to vote on the terms as a creditor. We will review the proposal on its merits. A CVA that offers a credible return and keeps the business trading is often preferable to liquidation for all parties.

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: How do I tell Credicorp my business is struggling?, What happens if my company misses a loan payment?.

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Most support tools assume a difficulty is temporary, with normal trading on the other side. But sometimes a company's situation has changed more fundamentally, through a lost major customer, a sector downturn, or a wind-down. Those situations need a different, honest conversation.

Be straight with us

If your company's difficulty looks structural rather than seasonal, say so directly. Pretending it is a short blip just delays the harder conversation and can make the eventual position worse. We would rather hear the real picture.

What we can look at

• A longer-term arrangement that reflects what the company can sustainably manage.
• How the balance is handled over an extended period.
• Signposting to independent advice on your company's wider options.

When to take formal advice

If the company itself may not survive, directors should get proper insolvency or restructuring advice. There are licensed professionals who advise on company difficulty, and taking that advice early protects both the business and the directors in carrying out their duties.

We still want to work with you

A long-term problem is not a reason to disengage from us. The opposite is true. Whether you hold Credicorp Flex or Credicorp Slice, an honest plan agreed with us is almost always better for the company than silence and escalation.

See also: What to do if your cash flow tightens during the term, Can I pause payments if my company hits a cash-flow gap? and How to budget loan repayments into your cash flow.

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A Debt Management Plan, or DMP, is an informal arrangement that lets an individual make a single reduced monthly payment to a debt-advice provider, who shares it across that person's creditors. It is a tool for personal debt.

Your loan is the company's, not yours personally

Your Credicorp loan is to the company, for a business purpose. A director's personal DMP covers the director's own debts (a personal card, a personal loan, a phone bill) — it does not cover, and is not affected by, the company's loan with us. The two are separate.

If you, the director, are personally struggling

If your own finances are under pressure, a DMP through a free provider may help with your personal debts. The largest free, regulated providers in the UK are StepChange, PayPlan, Citizens Advice and National Debtline — none charges a fee. That is a personal matter and you do not need to tell us about it.

If the company is struggling to pay us

If it is the company that is finding the repayments hard, please tell us early — that is what makes the difference. The quickest way is the Hardship Variation Request form. Once we know, we will:

• pause normal collection contact while we agree a way forward;
• look at a payment arrangement, a short freeze, or a restructure of the remaining term — see what a hardship variation is;
• never apply a charge that is not in your Business Loan Agreement.

For free, independent help with business money worries, Business Debtline (businessdebtline.org, 0800 197 6026) advises the self-employed and small businesses at no charge, and the Federation of Small Businesses offers member support. If the company's position is serious, a licensed insolvency practitioner can explain formal options such as a Company Voluntary Arrangement. You are welcome to contact us at any time to talk it through.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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A hardship variation is a change to the terms of the loan to reflect a genuine, often longer-term, change in the company's circumstances — for example a lost contract, a major customer going under, a seasonal downturn or an unexpected cost.

To consider a variation we will ask about the company's income and essential outgoings so any new arrangement is realistic and sustainable. Apply with the Hardship Variation Request form. Free, independent business debt advice is also available from Business Debtline (businessdebtline.org, 0800 197 6026).

See also: What is a repayment arrangement and how do I set one up?, Where can I get free, independent debt advice in the UK?, Help if you are struggling to make a payment.

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If keeping up with payments has become difficult, a repayment arrangement is a formal way to reshape what you owe into something the business can actually manage. Asking for one is sensible, not a black mark — and the earlier you ask, ideally before a payment is missed, the more room we have to help.

What an arrangement can look like

• A reduced-payment plan. You pay a smaller amount for a period while cash flow recovers, with the schedule adjusted around it.
• A short payment freeze. Where you need genuine breathing space, we can look at a payment freeze of 30 or 60 days. If you have told us you need extra care, a freeze can be arranged without the usual eligibility checks.
• A payment extension. If only a single due date is the problem, a short extension may be all you need — see can I get a payment extension.
• A hardship variation. For longer-term difficulty, a hardship variation changes the terms more substantially — see what is a hardship variation.

How to set one up

Use the Payment Arrangement Request form, or tell us through your portal or by phone. Please get in touch before the payment is due if you can. Telling us you are struggling, or asking about an arrangement, is not reported to credit reference agencies as a missed payment, and there is no penalty simply for asking. We will confirm any new schedule in writing so you know exactly where you stand. For the wider picture, see what to do if you are struggling to pay.

What an arrangement does not do

An arrangement reshapes your payments; it does not add hidden charges. There is no penalty-rate uplift for being in an arrangement, and the total cost of a single loan remains capped at 100% of what you borrowed — you will never repay more than double, arrangement or not. While we are working with you on an arrangement, and especially if you have asked for extra care, we will not pass your account to a third-party debt collector.

Free, independent help

Sometimes the most useful step is to talk to someone independent and free. Business Debtline (businessdebtline.org, 0800 197 6026) gives free, impartial debt advice to small businesses, and MoneyHelper (moneyhelper.org.uk) can help with personal money worries. Getting advice does not affect how we treat your account, and it often makes an arrangement easier to agree. If your circumstances mean you need us to do things differently, see how to tell us you need extra support.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can my company make a partial payment if it cannot pay in full?.

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When money is tight it is tempting to react in ways that feel protective but actually make things harder. Here are the common mistakes we see, and what to do instead.

Do not go quiet

Avoiding our calls and messages is the single most damaging thing you can do. Silence removes our ability to help and pushes the account further down the recovery process. Even a quick reply to say "I'm dealing with it" keeps you in a much stronger position.

Do not cancel the payment method without telling us

Cancelling a mandate or card quietly does not pause the obligation; it just causes a failed payment and looks like avoidance. If you need to stop a payment, talk to us first and we can arrange it properly.

Do not borrow recklessly to plug the gap

• Taking on expensive emergency finance to cover one payment can deepen the hole.
• A planned arrangement with us is usually cheaper and calmer than scrambling for new credit.
• If you are considering other lenders, weigh the full cost first.

Do not promise more than the company can pay

An arrangement only works if it is realistic. Agreeing to a figure you cannot meet just leads to another broken promise. Be honest about what Credicorp Flex or Credicorp Slice repayments your company can sustain, and we will work from there.

See also: Can my company make a partial payment if it cannot pay in full?, How do I spot the early warning signs of cashflow trouble? and How do we avoid making difficulty worse with quick-fix borrowing?.

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If your company is facing a temporary cash-flow gap this month, there are several options we can consider. None of them happen automatically — they require a conversation with us — but they are genuine routes, not just formalities. The right option depends on your circumstances, the remaining term of your facility, and your repayment history with us.

Short-term payment deferral

In some cases we can agree to defer one or more monthly payments to the end of your facility term. This keeps your agreement live and avoids a missed-payment entry on your company credit file, but it does mean interest continues to accrue across the deferred period. A short deferral is most suitable when the difficulty is genuinely temporary — for example, a large invoice that is 30 days late arriving.

Reduced instalment arrangement

If your business can sustain some repayment but not the full contractual amount, we may be able to agree a temporary reduced payment for a defined period. The shortfall would typically be recalculated and spread across remaining instalments once normal payments resume. As an illustrative, not-a-quote example, a company paying £2,000 a month might temporarily pay £1,000 for three months, with the £3,000 difference redistributed across the remaining term.

Full facility restructure

Where the pressure is more sustained — a structural change in revenue, a prolonged sector downturn — we can review whether the facility can be extended or otherwise restructured. This is a more involved process and will require up-to-date financial information, but it is preferable to allowing the account to fall into default.

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: How do I tell Credicorp my business is struggling?, What happens if my company misses a loan payment?.

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It is fair to want to understand what could happen if a company's arrears are left unresolved. We believe in being straight about this. Recovery is always a last resort, and almost every case is settled long before it gets there through dialogue.

The general path

If a company falls behind and no arrangement can be reached, the account moves through stages of contact and reminders. Where these do not lead to a resolution, the matter can move into formal recovery of the amount owed by the company under the agreement.

What this can involve

• Formal demands for the outstanding balance from the company.
• Use of a recovery partner acting on our behalf.
• Where necessary, legal steps to recover the debt from the company.

What it does not involve

Because we do not take personal guarantees, recovery is directed at the company, not at the directors personally. This is business lending outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply, and our agreement governs the process.

How to stay out of it

Recovery is avoidable. Respond when we contact you, agree a realistic plan, and keep us informed if things change. Whether your borrowing is Credicorp Flex or Credicorp Slice, engagement is what keeps an account on the support path rather than the recovery path.

See also: What happens if my company pays late?, What does 'arrears' mean and will it affect my credit file? and What happens when your company falls into arrears.

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You do not need a polished business plan to talk to us about payment difficulty, but a little preparation helps the conversation go further in less time. The more clearly you can describe your company's position, the better we can match an arrangement to it.

Useful things to gather

• Your loan or account reference so we can find you quickly.
• A rough picture of money coming in and going out over the next few weeks.
• What has changed, for example a late-paying customer, a lost contract, or a seasonal dip.
• Whether the difficulty looks short-term or likely to continue.
• What you think your company could realistically pay in the meantime.

Why this helps

When we understand cause, expected duration and affordability, we can suggest a plan that actually holds rather than one that simply delays the pressure. It also means fewer follow-up calls and a faster decision. If you are not sure of exact figures, estimates are fine; honest approximations are far more useful than waiting until you have perfect numbers.

Whatever you share is used to support you, not to catch you out. Credicorp lends to limited companies and LLPs for business purposes, so these are commercial conversations, but they are meant to be straightforward and constructive. Contact us through your account or the details on your agreement whenever you are ready.

See also: How to prepare before you call us about payment trouble, My company's cash flow is tight this month — what should I do? and What information should I have ready before I start?.

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Sometimes a company sets up an arrangement in good faith, then finds even the reduced amount is too much. That is disappointing, but it is not a disaster, and it is far better dealt with by telling us than by letting the plan quietly lapse.

Why a silent break is the worst outcome

If you stop making the agreed payments without warning, the arrangement is treated as broken and your account can move back towards arrears and the consequences that follow. None of that helps your company, and all of it is avoidable with a phone call or message.

• Tell us before you miss the next agreed payment, not after.
• Explain what has changed since the plan was set up.
• Be honest about what your company can now manage.

How we can adjust

An arrangement is a plan, not a one-time chance. We can often extend it, lower it further, switch to a different option such as a short pause, or reschedule the balance across your agreed term. The goal is always a plan that holds rather than one that breaks again in a month.

We will set out any effect on your balance and the rate shown in your offer before we change anything. As a business lender to limited companies and LLPs, these are commercial arrangements, but the door to revising them stays open as long as you stay in contact.

See also: What an HMRC Time to Pay arrangement means for my Credicorp payments, What happens to my arrangement if my circumstances change again? and Can a company in a CVA or with a repayment plan apply?.

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If a scheduled payment has failed today, do not ignore it and hope it sorts itself out. A failed payment is recoverable, but the best outcome depends on acting quickly. Here is a calm, practical order of things.

First, work out why it failed

A payment can fail for ordinary reasons: insufficient funds on the day, an expired card, a cancelled mandate, or a bank security block. Check your business bank account and the payment method linked to your account so you know what you are dealing with.

Then decide what your company can realistically do

• If the money is simply timing and funds will arrive in a few days, tell us when you can pay.
• If the shortfall is larger, do not try to force a payment that will fail again.
• If the method itself is broken, update it in your account before re-attempting.

Contact us the same day if you can

A quick message or call lets us note your company's account, pause any automatic chasing, and agree a sensible next step. We would far rather hear from you on day one than discover the problem ourselves.

Keep a record

Note who you spoke to and what was agreed. This applies whether you hold Credicorp Flex or Credicorp Slice, and it protects you if there is ever any confusion later. One failed payment is a normal business event, not a crisis, as long as you engage with it.

See also: How to build a simple cash-flow forecast to stay ahead of payments, Can I change my monthly payment date? and Can I change the date my payment is taken?.

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If money is tight, independent advice is often worth more than trying to work each creditor's process out one at a time. The right service depends on whether it is the business or you personally that is under pressure — and all the services below are free and confidential.

For the business

• Business Debtline — free, independent advice for the self-employed and small businesses, by phone and online (businessdebtline.org, 0800 197 6026). It is run by the Money Advice Trust.
• Federation of Small Businesses (FSB) — business support and advice for members (fsb.org.uk).
• A licensed insolvency practitioner — if the company's position is serious, an IP can explain formal options such as a Company Voluntary Arrangement, administration or, as a last resort, liquidation. You can find a licensed IP through the Insolvency Service or R3 (r3.org.uk).
• HMRC Time to Pay — if the pressure is a tax bill, HMRC can sometimes agree a payment plan (gov.uk).

For you personally

If it is your own finances rather than the company's, the leading free personal-debt services are StepChange (stepchange.org), Citizens Advice (citizensadvice.org.uk), National Debtline (nationaldebtline.org), PayPlan (payplan.com) and the government-backed MoneyHelper (moneyhelper.org.uk). None of them charges for advice.

What "free" really means

Every service above is funded so the advice is genuinely free to you — they do not take a slice of your payments. Paid-for debt firms exist, but a paid service will not get you a better outcome than a free one. If anyone asks for an upfront fee to set up a plan, treat that as a reason to switch to a free provider instead.

What we do at our end

If it is the company's loan with us that is the worry, you do not need our permission to seek advice — but a heads-up helps. Use the Hardship Variation Request form and we will hold collection contact while a plan is worked out. We would always rather agree something sustainable than see an account fall behind.

See also: Where can my company get free, independent business debt advice?, Free business debt advice organisations in the UK and How we support directors in vulnerable circumstances.

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If your company is in financial difficulty, you are entitled to seek independent advice and we actively encourage you to do so alongside speaking with us. Independent advisers are under no obligation to any lender and can help you understand all of your options — including those that may not involve continuing with your current loan facility. Taking proper advice early is one of the most effective steps a director can take.

Free services for business directors

• Business Debtline (businessdebtline.org) — a free, confidential helpline for self-employed people and small business owners, run by the Money Advice Trust. They advise on business debts, creditor negotiations, and insolvency options.
• The Insolvency Service (gov.uk/government/organisations/insolvency-service) — provides guidance on formal insolvency procedures including CVAs, administration, and liquidation, and publishes director responsibilities during insolvency.
• Citizens Advice Business — provides general debt guidance and can refer directors to specialist services.
• R3 — Association of Business Recovery Professionals (r3.org.uk) — can help you find a licensed insolvency practitioner for a free initial consultation.

When to seek advice

Do not wait until your company has formally missed payments before seeking advice. Directors who take advice early — when the company is technically solvent but cash-flow is strained — have significantly more options available, including refinancing, negotiated payment plans with creditors, and operational restructuring. Once a company is technically insolvent, directors have additional legal obligations and the window for informal resolution narrows.

Confidentiality

Seeking advice from any of the above organisations is confidential. Contacting a debt advice service does not automatically notify us or any other creditor, and does not trigger any formal process. You are free to explore your options and then decide how to proceed.

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 if my business is insolvent or considering administration?, How do I tell Credicorp my business is struggling?.

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One reason companies delay reaching out is simply not knowing who to contact or whether they will get a sympathetic hearing. This is meant to clear that up so there is nothing standing between you and a useful conversation.

Where to start

The quickest route is the contact details in your online account or on your loan documents. Ask to discuss your repayments or to raise a payment difficulty. You do not need to know the name of a specific team; just say what is going on.

What the team is there for

• Understanding your company's situation without judgement.
• Explaining the options realistically available to you.
• Setting up and recording any arrangement.
• Pausing routine chasing while a plan is being agreed.

How to make contact effective

Be clear that you are calling about payment difficulty, have your account reference ready, and describe the position honestly. The more openly you talk, the faster we can help. There is no special wording you need to use.

For both products

The same support applies whether your borrowing is Credicorp Flex or Credicorp Slice. Because this lending sits outside the FCA consumer-credit regime, the Financial Ombudsman Service does not apply, so talking to us directly is the most important channel you have. We would always rather you reached out too early than too late.

See also: How Credicorp treats businesses in financial difficulty, What if my company can only pay part of this month's amount? and Warning signs your company may be heading for payment trouble.

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If your company's cash flow is tightening, the single most useful thing you can do is tell us before a payment falls due rather than after it is missed. Early contact gives both sides room to work out a sensible plan while your account is still in good order.

Why timing changes your options

When you reach out before a missed payment, we can look at the whole picture calmly. There is no arrears position to unwind, no pressure, and more flexibility in what we can agree. The closer a conversation happens to a problem, the more constrained the choices tend to become.

• We can discuss a short-term adjustment to how your repayments are scheduled.
• We can talk through your wider trading position and what is driving the squeeze.
• You avoid the knock-on effects that follow a missed payment on your account.

What to expect from us

We will ask practical questions about your company's trading and what you expect over the coming weeks. The aim is to understand the situation, not to judge it. Whatever you tell us is used to find a workable way forward.

Credicorp lends only to UK limited companies and LLPs for business purposes. Because this is business lending outside the FCA consumer-credit regime, the Financial Ombudsman Service and FSCS do not apply, but our commitment to working constructively with companies in difficulty is real. Get in touch through your account or the contact details on your agreement.

Before you contact us, see how to prepare before calling about payment trouble, how we decide on a payment arrangement and what forbearance options may be available.

See also: A debt collection agency has contacted me - is it genuine?, Can my accountant or another representative deal with you on our behalf?, Can I get a payment extension?.

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Timing is the single biggest factor in how much we can do to help your company. Once a payment is already late, some routes narrow quickly. If you reach out while a problem is still on the horizon, almost everything is still on the table.

What "early" actually means

You do not have to wait until you cannot pay. If you can see a tight month coming, a delayed customer payment, a seasonal dip, or a one-off cost, that is the right moment to call us. Treat us as a planning partner, not just a last resort.

What gets easier when you contact us early

• We can look at adjusting the timing of a payment before it is recorded as missed.
• A short-term arrangement can be agreed calmly rather than under pressure.
• You avoid the knock-on effects that a missed payment can trigger.
• We have time to understand your company's situation properly.

You will not be penalised for being honest

Telling us early does not flag your company as a problem borrower. It does the opposite. It shows you are managing the business responsibly, and it lets our team work with you rather than chasing you. Whether you hold Credicorp Flex or Credicorp Slice, an early conversation is always the strongest move you can make.

Use the contact details in your account or your loan documents, and ask to discuss your repayments. The sooner we talk, the more we can do.

See also: Warning signs your company may be heading for payment trouble, Why contacting us early about cash-flow pressure helps your company and How do I spot the early warning signs of cashflow trouble?.

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We report repayment conduct to commercial credit reference agencies, so a missed payment that is not resolved or covered by a prior arrangement can appear on your company's credit profile. The impact depends on how quickly the issue is resolved and whether any arrangement was in place at the time the payment was due.

How credit reporting works for business loans

Commercial credit reporting is separate from personal credit reporting. The information reported — including payment history, outstanding balance, and any arrears — attaches to your limited company or LLP, not to you personally as a director. Other lenders and suppliers who carry out credit checks on your company may see this data, which can influence credit limits, trade terms, and future finance applications.

Agreed arrangements and credit reporting

If you contact us before a payment is missed and we formally agree a revised schedule in writing, payments made under that arrangement are not reported as late or missed — they are reported as made in accordance with the arrangement. This is the principal practical reason to engage with us early. A documented plan is a significantly better outcome for your company's credit file than an unmanaged arrear sitting on the record for up to six years.

Correcting inaccurate entries

If you believe an entry on your company credit file has been recorded incorrectly — for example if an arrangement was in place but the account was still flagged — contact us with the written confirmation of your arrangement and we will investigate. We can issue a correction to the relevant credit reference agency if the reporting was in error.

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 happens if my company misses a loan payment?, Can a payment plan be arranged if my business is struggling?.

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A common worry is that asking for help now will quietly count against your company later. We would rather be honest about how this works than have you struggle in silence because of a guess about the consequences.

The honest picture

Engaging with us early and keeping to an agreed arrangement is, if anything, a positive signal. It shows a company that communicates, manages problems responsibly and follows through on what it commits to. That is exactly the behaviour any lender values.

• Reaching out before a missed payment is treated as responsible management.
• Sticking to an arrangement demonstrates reliability under pressure.
• Avoiding contact and letting arrears build is what tends to cause harm.

What we look at in future

Any future lending decision considers your company's overall position at that time, including its current trading and repayment record. A single period of difficulty that you handled well is one part of a much bigger picture, not a permanent black mark. We assess each application on its merits.

It is also worth knowing that arrears can be reported to credit reference agencies and affect your company's wider credit profile, which is another reason early engagement is better than silence. As a business lender outside the consumer-credit regime, we are not bound by the same rules as consumer lenders, but our approach rewards openness.

See also: How arrears affect your company's future borrowing with us, Will a late or missed payment affect my company's future borrowing? and What does 'arrears' mean and will it affect my credit file?.

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No. Our facilities are made to UK limited companies and LLPs. There is no director personal guarantee attached to the loan, which means that if your company is unable to repay, we do not pursue you personally for the outstanding balance. Our recourse is to the company and any security the company has provided — not to your personal assets, personal credit file, or personal finances.

What this means in practice

If your company defaults or enters an insolvency process, we engage with the company — or its appointed insolvency practitioner — rather than with you in your personal capacity. Your personal bank account, home, and personal credit record are not exposed by reason of this loan. This is one of the core protections of limited liability that UK company law provides to directors.

Situations where personal liability can still arise

It is important to be clear that personal liability can arise in other contexts — not from this loan, but from your conduct as a director. If a court or insolvency practitioner finds evidence of wrongful trading, fraudulent trading, or preferring certain creditors over others, directors can face personal liability under the Insolvency Act 1986. These are conduct-related risks, not loan-agreement risks. If your company is in difficulty, taking proper insolvency advice promptly reduces your exposure on this front.

Free business debt advice

Independent advice is available for directors of companies in financial difficulty. The Insolvency Service publishes guidance at gov.uk, and organisations such as the Business Debtline provide free confidential support to directors navigating company financial difficulty.

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 if my business is insolvent or considering administration?, What happens if my company misses a loan payment?.

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This is one of the most common worries directors raise, so it is worth being clear. Credicorp lends to your limited company or LLP for business purposes. The borrower is the company, not you as an individual.

We do not take personal guarantees

We do not ask directors to sign personal guarantees on Credicorp Flex or Credicorp Slice. That means the obligation to repay sits with the company. If the company falls into arrears, we pursue the company under the terms of the agreement, not the directors' personal assets.

What this does not change

Directors still have their normal legal duties to the company, including duties that apply when a company is in financial difficulty. Those duties come from company law, not from us. If your company is genuinely struggling, taking proper advice on those duties is sensible.

Your company's record, not your personal credit file

• The agreement and any arrears relate to the company.
• We do not report directors' personal credit files for company borrowing with us.
• How a missed payment is recorded against the company depends on the agreement and applicable reporting.

Because this lending sits outside the FCA consumer-credit regime, the Financial Ombudsman Service and FSCS protection do not apply. If you are unsure how arrears affect your company specifically, contact us and we will talk it through.

See also: How difficulty support differs for business borrowers versus consumers, Does the Breathing Space scheme apply to my business loan?, What happens if a director resigns while the company is in arrears?.

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