Learn: financial difficulty

When the immediate pressure eases, it is tempting to exhale and carry on exactly as before. The companies that emerge stronger use the moment differently: they turn what they learned under pressure into a deliberate plan, so the next shock finds them better prepared.

What a good recovery plan covers

• The cause: an honest look at what actually drove the difficulty, not just the symptoms.
• The reserve: a target buffer of cash to rebuild, and how you will fund it month by month.
• The numbers you watch: a short set of indicators reviewed regularly so warning signs surface early.
• The commitments: a realistic schedule for clearing what built up, in a sensible order.

Pace the recovery

Rebuilding too aggressively can recreate the strain you just escaped. Set a pace the business can sustain, protect the reserve as you grow, and keep the habits, such as a rolling cashflow forecast, that helped you through. Recovery is a phase to manage, not a finish line to sprint for.

If clearing arrears or rebuilding around a Credicorp Flex or Credicorp Slice facility is part of your plan, involve us in it. A repayment schedule that fits your recovery, agreed openly, is far more likely to succeed than one that pushes the business back toward the pressure it just survived.

See also: How do I spot the early warning signs of cashflow trouble?, How can a seasonal business manage the quiet months?, Building a thirteen-week cashflow forecast.

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When a business is comfortable, an annual budget is enough. When money is tight, you need to see the next quarter week by week. A thirteen-week cashflow forecast shows exactly when cash comes in, when it goes out, and which weeks will be tight enough to need a plan.

How to set it up

• List thirteen columns, one per week, starting from your current bank balance.
• Enter expected receipts by the week you genuinely expect the money to clear, not the invoice date.
• Enter every outgoing: payroll, rent, suppliers, VAT, PAYE, loan repayments and direct debits.
• Carry the closing balance of each week into the opening balance of the next.

Using it well

The value is in the discipline of updating it every week with what actually happened, then rolling a new week onto the end. Over a month you learn how reliable your own estimates are, which makes the forecast more trustworthy precisely when you need to lean on it.

Where you can see a Credicorp Flex or Credicorp Slice repayment landing in a low-balance week, you have time to act. You might bring forward a customer payment, agree a short supplier extension, or contact us about your options before the date arrives. A forecast turns a future shock into a decision you make calmly today.

Keep it simple. A spreadsheet you actually maintain beats sophisticated software you abandon after a fortnight.

See also: How do I spot the early warning signs of cashflow trouble?, Cashflow forecasting basics for limited companies, How do we avoid making difficulty worse with quick-fix borrowing?.

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Plenty of healthy companies earn most of their money in a few intense months and then face a long, lean stretch. The danger is not the quiet season itself; it is treating predictable seasonality as if it were an unexpected emergency. With planning, the trough becomes a managed phase rather than a crisis.

Plan the trough during the peak

• While trading is strong, set aside a reserve specifically to cover the quiet months.
• Map your fixed costs across the lean period so you know the true shortfall in advance.
• Look for off-season revenue: maintenance work, pre-bookings, or a complementary line that peaks at a different time.
• Align supplier and overhead commitments with your cash rhythm where you can.

Smooth the cash, not just the costs

Seasonal businesses often benefit from spreading commitments so the bills do not all land in the months with the least income. Build a forecast that runs across a full cycle, not just a quarter, so the shape of your year is visible.

A Credicorp Flex or Credicorp Slice facility can be part of bridging a known seasonal gap, but it works best when the repayment pattern fits your cycle. If a repayment falls in your quietest month, talk to us early so we can look at aligning it more sensibly with when your company actually earns.

See also: How do I manage a seasonal dip in trading?, Managing repayments when your business is seasonal, Building a realistic recovery plan after a difficult period.

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For a lot of companies in difficulty, the money to ease the pressure is already owed to them. It is just sitting in customers' accounts as unpaid invoices. Sharpening your credit control can release that cash faster than almost any cost cut, and it costs nothing to do well.

Practical steps that work

• Invoice immediately on delivery, not at the end of the month, with clear payment terms.
• Confirm the invoice was received and is approved, so nothing stalls quietly.
• Have a fixed chasing routine: a reminder before the due date, then prompt follow-ups after.
• Make it easy to pay, with clear bank details and simple payment methods.
• For larger jobs, consider deposits or staged payments so you are not funding the whole project.

Stay firm but professional

Chasing is not rude; it is the other side of doing the work. Be consistent and polite, keep a record of every contact, and escalate calmly if a customer persistently ignores agreed terms. A reputation for chasing reliably tends to move you up customers' payment queues.

If a Credicorp Flex or Credicorp Slice repayment is tight while you wait on a known, reliable receipt, contact us. Bridging a short, predictable gap is exactly the kind of situation where talking to us early can help.

See also: What to do if you can't make a payment, How do I spot the early warning signs of cashflow trouble?, How do we avoid making difficulty worse with quick-fix borrowing?.

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Not every cashflow problem is a sign of a failing business. Sometimes it is simply a matter of timing — money is owed to you, but it has not arrived yet, and in the meantime you have wages to pay, stock to buy, or a supplier to settle. Short-term business finance exists precisely for this situation.

When short-term finance makes sense

Short-term finance is worth considering when:

• You have confirmed, collectable receivables but they will not clear in time to meet an imminent obligation
• You have a one-off, time-sensitive cost — a bulk stock purchase, a renewal, a tax bill — that falls at an awkward point in your cash cycle
• You want to protect a key supplier relationship rather than risk damaging it by asking for extended terms

It is less appropriate as a long-term subsidy for a business that is consistently spending more than it earns. If that is the position, trading performance needs to be addressed alongside any financing.

Types of short-term facility

A revolving credit facility — such as Credicorp Flex — lets a company draw funds up to an agreed limit, repay as cash comes in, and redraw again. This suits businesses with cyclical or irregular income because you only borrow what you need and repay when you can. A fixed short-term loan provides a lump sum repaid over a defined period, which suits a one-off cost with a known repayment profile. For a single large bill, a product like Credicorp Slice spreads the cost over three or four weekly instalments at a flat fee, avoiding a large one-off impact on the current account.

What to check before borrowing

Make sure the repayment schedule aligns with when you expect cash to arrive — not just with what looks comfortable on paper. If you are uncertain whether the underlying cashflow gap is temporary or structural, take free advice first before committing to repayments.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: The difference between insolvency and a cashflow gap, Options before a cashflow problem escalates.

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When your business is under cashflow pressure, a simple short-term forecast is worth more than any complex financial model. A 13-week (roughly three-month) cashflow forecast tells you exactly when money arrives and when it leaves — so you can see gaps coming before they become crises.

What to include

Start with a spreadsheet. Create one column per week for 13 weeks. For each week, list:

• Money in: expected customer payments (the date the cash should actually clear, not the invoice date), any loans or grants expected
• Money out: wages, rent, supplier payments, VAT, PAYE, loan repayments, insurance, subscriptions — everything with a known or estimated date
• Opening and closing balance: start with your current bank balance and run the arithmetic week by week

Be conservative on the inflows

The most common mistake is assuming customers will pay on time. Base your forecast on when you realistically expect money, not when it is contractually due. If a particular customer consistently pays 15 days late, build that in. An honest forecast that shows a gap is more useful than an optimistic one that masks it.

Use the forecast actively

A cashflow forecast is only useful if you update it each week with actuals and revise the projections. Where you see a future week going into the red, you have time to act — chase a debtor, defer a cost, or arrange bridging finance before the gap arrives. Lenders and advisers will also take you more seriously if you can show you understand your own numbers.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: Early warning signs your cashflow is under pressure, Options before a cashflow problem escalates.

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Most business financial difficulty does not arrive overnight. It builds over weeks while the headline numbers still look acceptable. The companies that handle it best are the ones that catch the drift early, while there is still room to adjust suppliers, terms and timing rather than react under pressure.

Signals worth tracking every month

• Your closing bank balance is trending down month on month, even in a steady trading period.
• You are relying on incoming customer payments arriving exactly on time to meet your own outgoings.
• Aged debtor days are creeping up and chasing is slipping down the to-do list.
• You are paying suppliers later than agreed, or in part, to manage the week.
• VAT, PAYE or Corporation Tax set-asides are being dipped into for day-to-day costs.

What to do once you see them

Build a simple thirteen-week cashflow forecast and update it weekly. It does not need to be sophisticated, only honest. Map the weeks where money is tight before they arrive, and you can decide calmly whether that is a timing problem, a margin problem or a demand problem. Each needs a different response.

If a Credicorp Flex or Credicorp Slice repayment falls in one of those tight weeks, contact us early. We would always rather talk before a payment is missed than after. Acting in advance keeps far more options on the table for your company.

See also: Building a thirteen-week cashflow forecast, What is an HMRC Time to Pay arrangement, and when should we ask for one?, How do we avoid making difficulty worse with quick-fix borrowing?.

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Talking to creditors when things are difficult is daunting, but it is also one of the most effective things a director can do. Creditors — whether suppliers, lenders, or HMRC — generally prefer to agree a manageable repayment plan over pursuing enforcement action.

Prepare before you call

Before you contact any creditor, put together a clear picture of the company's position:

• What you owe in total, and to whom
• What cash you have available now
• What cash you expect to receive over the next 30, 60, and 90 days
• A realistic proposal — a revised payment date, a reduced monthly sum, or a short payment holiday

You do not need a polished document. A simple spreadsheet or even a clear set of notes is enough to hold a productive conversation.

What to say

Be direct and factual. Explain that the company has a cashflow difficulty, that you are managing it actively, and that you want to honour the debt. Propose something specific rather than asking what they want. Creditors respond better to a director who has a plan than one who is simply apologising. Confirm any agreement by email immediately after the call.

HMRC Time to Pay

HMRC has a dedicated service for businesses that cannot pay a tax bill on time, called Time to Pay. You can request a payment arrangement for PAYE, VAT, Corporation Tax, and Self Assessment. Call the HMRC Business Payment Support Service on 0300 200 3835 before your payment deadline if at all possible — it is much harder to negotiate after enforcement action has started.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: What to do when you cannot pay a supplier, Where to get free business debt advice.

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When a company is under pressure, offers of fast, easy money can be tempting. The trouble is that the quickest funding is often the most expensive, and borrowing to plug a hole you cannot yet see the bottom of can deepen difficulty rather than resolve it. A few questions help you judge well.

Questions to ask before taking on new finance

• Is this a timing problem that new funding genuinely bridges, or a deeper margin or demand problem that borrowing only delays?
• Can the company realistically meet the repayments out of expected cashflow, not best-case hopes?
• What is the true cost over the full term, including every fee, not just the headline?
• Who is the lender, and are their terms clear and fair?

Borrow into a plan, not a panic

Healthy borrowing supports a credible plan with a clear repayment route. Panic borrowing fills a gap today and creates a bigger one later. If you cannot see how the money will be repaid, that is a signal to take advice before signing anything.

If you already hold a Credicorp Flex or Credicorp Slice facility and are tempted to stack expensive new debt on top to keep up with it, pause and talk to us first. Restructuring what you have with us may be far healthier than adding a costly second commitment in a difficult month.

See also: Matching the borrowing to the need it funds, What not to do when your company cannot pay, How can a seasonal business manage the quiet months?.

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If your company hits a week where it cannot pay every creditor in full, the worst response is to pay whoever shouts loudest. A calm, defensible order protects the business and treats creditors fairly. This is general information, not legal or insolvency advice, and a licensed insolvency practitioner should be involved if the company may be unable to pay its debts.

A sensible order of priorities

• Costs that keep you trading: payroll, critical suppliers, rent and the utilities your operation cannot run without.
• Statutory obligations: VAT, PAYE and Corporation Tax. HMRC has strong collection powers and prefers early contact.
• Secured and finance commitments: anything tied to an asset you need, and agreed loan repayments.
• Other trade creditors: negotiated where possible into a realistic timetable.

Talk before you skip

For almost every creditor, a phone call to agree a short revised plan is better than silence followed by a missed payment. Most will work with a company that engages early and proposes something credible.

That includes us. If a Credicorp Flex or Credicorp Slice repayment cannot be met in full, contact us before the due date so we can look at your hardship and forbearance options. Engaging early almost always leaves you with more room than going quiet and hoping.

See also: What is an HMRC Time to Pay arrangement, and when should we ask for one?, A director's loan to your own company: tax and legal points and Applying as a newly incorporated company.

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Financial difficulty is not only a business problem; it weighs heavily on the people carrying it. Directors and owners often absorb the worry quietly while keeping a brave face for staff and customers. That pressure can cloud judgement at exactly the moment clear thinking matters most, so your wellbeing deserves attention as much as the numbers do.

Things that genuinely help

• Talk to someone you trust, whether a peer, a mentor, or your accountant, so you are not carrying it alone.
• Separate the decisions you can take this week from the ones that can wait, to reduce overwhelm.
• Protect basic routines: sleep, breaks and time away from the inbox sharpen your decisions.
• Remember that financial difficulty is common and rarely a verdict on you as a person.

Reach out if it gets heavy

If the strain is affecting your health, please speak to your GP or a support service. Organisations such as the Samaritans are there at any hour. There is no weakness in asking for help; it is what resilient people do.

On the financial side, do not let worry stop you from contacting us about a Credicorp Flex or Credicorp Slice repayment. Many people find that simply having the conversation lifts a weight, because uncertainty is often heavier than the facts. We would rather hear from you early than have you sit with it alone.

See also: Looking after yourself while handling business money stress, How Credicorp treats businesses in financial difficulty, Where can my company get free, independent business debt advice?.

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If something has gone wrong, or you are unhappy with how we have handled your company's loan, we want to hear about it. A complaint is not a nuisance to us; it is how we put things right for you and improve for everyone else. We will look into what you raise fairly, take it seriously, and keep you informed along the way.

Here is how to complain, the stages your complaint goes through, and what your options are if you are still not satisfied at the end.

How to complain

You can raise a complaint in whatever way is easiest for you. The most direct route is our Make a Complaint form, which sends it straight to the right team. It helps if you can tell us what happened, when, how it has affected you or your company, and what you would like us to do to put it right. If you need to complain in a particular format, or need extra support to do so, just let us know and we will make that work.

The stages we follow

Our process is designed to be clear and reasonably quick:

1. We acknowledge your complaint so you know it has reached the right team and is being looked into.
2. We investigate, reviewing what happened, listening to any call recordings where relevant, and checking your complaint against your Business Loan Agreement and our records.
3. We respond. Where we can resolve things quickly, we will. Where it needs more time, we will keep you updated on progress and tell you when to expect an answer.

You can read more about what to expect in what FOS and FSCS cover, which also explains the escalation point below.

Our final response

When our investigation is complete, we will send you a final response. This sets out what we found, our decision, and our reasons, in plain language. If we got something wrong, we will say so and explain how we will fix it. If we do not uphold your complaint, we will explain why, clearly and honestly, so you understand the decision even if you do not agree with it.

If you are still not satisfied

It is important to be straight with you about this. Because we lend to companies for business purposes, this product is not covered by the Financial Ombudsman Service (FOS), and it is not covered by the Financial Services Compensation Scheme (FSCS) or the Business Banking Resolution Service. That is a feature of business lending to a body corporate, not a gap we have chosen, and it is explained further in what FOS and FSCS cover.

This means that if you remain unhappy after our final response, the final route of escalation is the courts, rather than an ombudsman. We hope it never comes to that, and the great majority of complaints are resolved well before then. We would always rather understand your concern and put it right ourselves.

Getting independent help

If your complaint sits alongside wider money worries, free and independent advice is available for your business from Business Debtline at businessdebtline.org or on 0800 197 6026. Whatever the issue, telling us is the best place to start, and we will treat your complaint with the seriousness and respect it deserves.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

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When cash is tight, your suppliers are usually the first relationship you can ease without long-term damage, provided you handle it openly. A supplier who is told the truth and offered a realistic plan will often agree to terms they would never give to a customer who simply stops paying.

Before you call

• Know exactly what you owe, what you can pay now, and what you can commit to over the coming weeks.
• Decide what you are asking for: a short extension, a payment plan, or a temporary reduction in order size.
• Be ready to explain the cause briefly and the path back to normal.

During the conversation

Lead with what you can do, not only what you cannot. Offer a specific date and amount rather than a vague promise. Protect the suppliers you genuinely depend on, because losing a critical supplier mid-difficulty is far more costly than the cash you were trying to preserve. Put any agreement in writing afterwards so both sides remember the same terms.

The same principle applies to us

Credicorp would rather restructure a Credicorp Flex or Credicorp Slice repayment that you cannot currently meet than see it missed without warning. Treat us the way you would treat a key supplier: contact us early, be straight about the position, and propose what is realistic for your company.

See also: Our hardship and forbearance process, What is an HMRC Time to Pay arrangement, and when should we ask for one?, How should my company prioritise which bills to pay first?.

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When cash is tight, your suppliers are usually the first relationship you can ease without long-term damage, provided you handle it openly. A supplier who is told the truth and offered a realistic plan will often agree to terms they would never give to a customer who simply stops paying.

Before you call

• Know exactly what you owe, what you can pay now, and what you can commit to over the coming weeks.
• Decide what you are asking for: a short extension, a payment plan, or a temporary reduction in order size.
• Be ready to explain the cause briefly and the path back to normal.

During the conversation

Lead with what you can do, not only what you cannot. Offer a specific date and amount rather than a vague promise. Protect the suppliers you genuinely depend on, because losing a critical supplier mid-difficulty is far more costly than the cash you were trying to preserve. Put any agreement in writing afterwards so both sides remember the same terms.

The same principle applies to us

Credicorp would rather restructure a Credicorp Flex or Credicorp Slice repayment that you cannot currently meet than see it missed without warning. Treat us the way you would treat a key supplier: contact us early, be straight about the position, and propose what is realistic for your company.

See also: Our hardship and forbearance process, What is an HMRC Time to Pay arrangement, and when should we ask for one?, How should my company prioritise which bills to pay first?.

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When a company is finding it hard to keep up with repayments, we would much rather work with you than leave you to struggle. Here is how our hardship and forbearance process works, so you know what to expect before you get in touch. The aim is always the same: to find an arrangement that is realistic for your business and that gets the loan back on a sustainable footing.

Forbearance simply means giving a borrower room to recover, rather than pressing for payment your company genuinely cannot make. It is a normal, sensible part of lending responsibly, and asking for it is not something to feel awkward about.

Step one: tell us what has changed

Everything starts with a conversation. Contact us, ideally before a payment is missed, and tell us what has happened and how it is affecting your cash flow. We will listen, ask a few questions about your company's income and outgoings, and look at what is affordable. Honest figures help us help you, even when the picture is not rosy.

The options we can consider

Depending on your situation, we may agree one of the following:

• A payment arrangement. If the difficulty is short-term, we can spread what is owed over a period your company can manage, then return to the normal schedule.
• A short freeze. Where you need breathing space, for example while you chase a large invoice or recover from a one-off shock, we may pause payments for an agreed time.
• A hardship variation. If the difficulty is more serious or likely to last, we can vary the terms of the loan itself to make it affordable over a longer period. You can read more in what is a hardship variation?.

We will talk through which option fits, explain what it means in plain terms, and confirm the new arrangement in writing so there is no confusion.

What we will and will not do

We will treat you with respect, keep your information confidential, and be clear about every step. We will never apply a charge that is not already set out in your Business Loan Agreement. We do not invent fees, and we do not add surprise costs as a penalty for being in difficulty. If a variation changes what you will pay overall, we will show you exactly how, and the figures will always trace back to the agreement you signed and the Key Information Sheet (KIS) you received.

Because we lend to your company for business purposes and take no personal guarantee from its director, our focus is on the company's ability to recover. We will be straight with you about what is possible.

Get independent advice first if you want to

You are always welcome to take free, independent advice before or during this process, and we would encourage it. Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you work out a budget and prioritise your debts. For the full picture of free help available, see where can I get free independent debt advice in the UK?.

What happens after an arrangement is agreed

Once we have agreed a way forward, we will put it in place and confirm the details to you. We will also pause unnecessary contact and any further collection steps while you stick to the new plan. If your circumstances change again, for better or worse, tell us, and we will review the arrangement. Plans can be adjusted; the important thing is to keep the conversation open. Reaching out early, and staying in touch, is what makes a good outcome far more likely.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

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When a company hits a difficult patch, the instinct is often to cut hard and fast across the board. A more durable approach is to restructure deliberately: protect what generates revenue and reduce what does not, so the business comes out leaner rather than weaker.

A measured way to review costs

• Separate costs that directly win or deliver work from costs that merely support it.
• Look for subscriptions, licences and services that have quietly become unused.
• Review supplier contracts for better terms before cancelling outright.
• Consider whether some fixed costs can become variable, so they flex with demand.

Protect your capacity to earn

Be careful about cutting the things that bring revenue in: sales effort, the people customers rely on, and the quality that keeps them loyal. Cutting too deep there can shrink the business faster than the savings help. The aim is a cost base the company can sustain through the trough and scale back up in recovery.

If restructuring frees up cash but the timing is awkward against a Credicorp Flex or Credicorp Slice repayment, talk to us. We may be able to adjust the schedule for a period while your changes take effect, so a sensible recovery plan is not derailed by a single difficult month.

See also: How can better credit control ease our cashflow pressure?, How can a seasonal business manage the quiet months?, Building a realistic recovery plan after a difficult period.

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If a company reaches the point where it genuinely cannot pay its debts as they fall due, there is a structured set of options under UK insolvency law. Knowing the broad landscape helps you have a sensible conversation with a professional. This is general information only; the right route depends entirely on your circumstances and must be advised by a licensed insolvency practitioner.

Routes you may hear about

• Company Voluntary Arrangement: a formal agreement to pay creditors over time while the company keeps trading.
• Administration: a process to protect a company while a rescue or better outcome is pursued.
• Creditors' Voluntary Liquidation: directors choosing to wind the company up when rescue is not viable.
• Informal arrangements: negotiated payment plans agreed directly with creditors, outside any formal process.

The common thread

The earlier you take advice, the more of these options remain genuinely available. Rescue routes in particular depend on acting while the company still has something to save. A licensed insolvency practitioner can explain which paths fit and what each means for directors and creditors.

Because a Credicorp Flex or Credicorp Slice loan is made to the company, it forms part of this picture. Keep us informed if a formal process is being considered, and tell your adviser about the facility so it is properly accounted for in any plan.

See also: What is insolvency?, Where can my company get free, independent business debt advice?, What not to do when your company cannot pay.

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Life does not stop while a loan is being repaid. Sometimes a director or someone close to them is going through something difficult, and that can make managing money and dealing with a lender much harder. If that is you, please tell us. We can put extra support in place, and asking for it is straightforward. It never affects the decision on your company's application or the way we treat you, except to make sure we look after you properly.

We take this seriously because it is the right thing to do. Anyone can find themselves needing a bit more help, sometimes suddenly, sometimes for a short while. We want you to feel able to ask.

What counts as needing extra support

There is no fixed list, and you do not need a label to qualify. People commonly ask for extra support because of:

• Health, including a physical illness, a mental-health condition, a disability, or a recent diagnosis.
• Bereavement, such as the death of a business partner, family member or someone close.
• Caring responsibilities that take up time and energy.
• A major life event, such as relationship breakdown, or a sudden change in circumstances.
• Communication needs, for example if you find phone calls hard, need information in large print, or need a little more time to take things in.

This is not exhaustive. If something is making this harder for you, that is reason enough to tell us.

How we adjust

Once we know, we tailor our support to you. Depending on what helps, that can mean giving you more time to respond, communicating in a way that suits you, sending documents in an accessible format, speaking with someone you nominate to help you, or being especially careful and patient in how we handle your account. If money is also tight, we can look at the payment options described in our hardship and forbearance process at the same time.

You can read more about our approach on our vulnerability page.

How to tell us

You can let us know whenever it suits you, and you only need to tell us once. The simplest way is to complete the Additional Support Needs form, which goes straight to the right team. For step-by-step guidance, see I need extra support, how do I tell you?. You can share as much or as little detail as you are comfortable with; even a short note helps us understand what you need.

Your privacy

What you tell us is treated sensitively and kept confidential, and it is only used to support you. It does not count against your company in any way. We will record what helps so that you do not have to explain yourself again every time you contact us, and you can ask us to update or remove those notes whenever you like.

You are not on your own

Alongside the support we provide, free and independent help is available. For business money worries, Business Debtline offers free, confidential advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. If a director needs personal support, organisations such as Citizens Advice can help too. Whatever you are dealing with, telling us is the first step, and we will take it from there with care.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

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A missed repayment can feel like a point of no return, but it is not. What matters far more than the miss itself is what happens around it: whether you contact us, when, and how openly. Companies that engage early almost always have a smoother path than those that go quiet.

What you can expect from us

• We will try to understand the cause and whether it is a one-off timing issue or a deeper difficulty.
• We will explain the options on your Credicorp Flex or Credicorp Slice facility, including our hardship and forbearance process.
• We will be clear about any charges or consequences set out in your agreement, using the terms you signed, not surprises.
• We treat companies in genuine difficulty with fairness and discretion.

Why early contact matters

The earlier you reach out, the more we can do. A conversation before a payment is due opens up far more options than one after several have been missed. Silence narrows what is possible for everyone.

Remember that our loan is made to your company, not to you as an individual, and we do not take personal guarantees from directors. As an exempt business lender, we sit outside the consumer-credit regime, so the Financial Ombudsman Service and FSCS do not apply, but our own complaints process is open to you and we take it seriously.

See also: What happens if I miss a payment?, What to do if you can't make a payment, Our hardship and forbearance process.

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Running a healthy company, your duty is to promote its success for the benefit of shareholders. When the company is in real financial difficulty and insolvency becomes a possibility, that focus shifts towards the interests of creditors. Understanding this change is important, because decisions made in this period can be looked at carefully later. This is general information, not legal advice.

Practical things that help

• Keep clear, dated records of the decisions you take and the reasons behind them.
• Hold and minute regular board discussions about the financial position.
• Avoid taking on new credit you have no realistic way of repaying.
• Treat creditors even-handedly rather than preferring connected parties.
• Take professional advice from an accountant or licensed insolvency practitioner sooner rather than later.

Why early advice matters

Directors who seek advice early usually have more legitimate options and a stronger record of having acted responsibly. Waiting until the position is critical narrows what can be done and removes the benefit of acting in good time.

If your company holds a Credicorp Flex or Credicorp Slice facility, keep us informed as part of acting responsibly toward your creditors. Our loan is to the company, and early, honest contact lets us respond constructively rather than reactively.

See also: How Credicorp treats businesses in financial difficulty, Looking after yourself while running a business in difficulty, Where can my company get free, independent business debt advice?.

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Running a limited company in financial difficulty is stressful, and many directors are not aware that their legal duties change as the situation becomes more serious. Understanding this early can prevent personal liability further down the line.

Your duties when trading normally

Under the Companies Act 2006, directors owe their primary duties to the company and, through it, to shareholders. These include acting within powers, exercising reasonable care and skill, promoting the success of the company, and avoiding conflicts of interest.

How duties shift under financial pressure

Once a company is approaching insolvency — or is insolvent — the law requires directors to give increasing weight to the interests of creditors, not just shareholders. This is not a cliff edge; it is a gradual shift that begins when you know or should reasonably know there is a real risk the company cannot pay its debts. In practical terms, this means:

• Do not pay dividends or return value to shareholders when creditors are unpaid
• Do not sell company assets at undervalue to connected parties
• Do not take on new credit obligations you have no realistic prospect of repaying
• Keep good records of every decision you make and why

Wrongful trading and misfeasance

If a company does become insolvent and is later wound up, an insolvency practitioner may review director conduct. Wrongful trading — continuing to trade and accumulate debt when you knew or should have known there was no reasonable prospect of avoiding insolvent liquidation — can result in personal liability. Taking prompt advice, documenting decisions, and not drawing excessive remuneration are all protective steps.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: The difference between insolvency and a cashflow gap, Where to get free business debt advice.

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Cashflow trouble rarely arrives without warning. Most limited companies and LLPs see a cluster of small signals weeks or even months before a real crisis — and catching them early means you have far more tools at your disposal.

Common early signals

• You are paying suppliers later each month — if you routinely stretch 30-day terms to 45 or 60 days, that gap is telling you something.
• Your current account dips to near-zero before invoices clear — a shrinking buffer is one of the clearest early signs.
• You are drawing on an overdraft for day-to-day costs — not occasional use, but regular reliance on it to cover wages or stock.
• Sales are growing but cash is not keeping pace — fast growth can hide cashflow gaps because money goes out before it comes back in.
• A single large customer makes up most of your receivables — concentration risk means one slow payment can stall the whole business.

Why cashflow matters more than profit

A business can be profitable on paper and still run out of cash. Profit sits in your accounts; cash is what pays wages on Friday. Watching your cashflow position weekly — not just at month end — gives a realistic picture of where the company stands.

What to do if you recognise these signs

Act early. The sooner you move, the more options remain open. Review your aged debtors list and chase overdue invoices. Look at large outgoings that could be timed differently. Speak to your accountant if you have one, or contact a free business advisory service such as the British Business Bank's Business Support Helpline.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: What to do when you cannot pay a supplier, The difference between insolvency and a cashflow gap.

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Insolvency is a frightening word, and if your company is heading towards being wound up or entering administration, the last thing you need is uncertainty about what it means for your loan. Here are the basics, set out calmly and honestly. The most important message is this: talk to us early. The sooner we understand your situation, the more we can do to help, and the more options are likely to be open.

Facing financial difficulty does not make you a failure as a director. Many capable people go through it. What matters now is getting the right information and the right advice.

A quick note on the terms

These processes are formal, and they have specific meanings:

• Administration is a process that aims to rescue a company as a going concern, or to get a better result for creditors than winding up would, by placing it under the control of a licensed insolvency practitioner.
• Winding up (liquidation) is the process of closing a company down and distributing whatever assets remain to those it owes money to, in an order set by law.

Which process applies, and what it involves, depends on your company's circumstances, so independent advice is essential.

What happens to the loan

We lend to your company, not to you personally, and we do not take a personal guarantee from its director. That is an important point: the loan is the company's liability. If the company becomes insolvent, we become one of its creditors, and the loan is dealt with through the formal process alongside the company's other debts, under the control of the insolvency practitioner.

Before things reach that stage, it is well worth exploring whether difficulty can be resolved another way. Our hardship and forbearance process sets out the payment arrangements, short freezes and variations we can sometimes put in place to help a company recover without a formal insolvency at all.

The role of a licensed insolvency practitioner

A licensed insolvency practitioner is a qualified, regulated professional who administers formal insolvency processes. They take control of the situation, deal with creditors including us, and act in line with their legal duties. If you are considering administration or winding up, you should take advice from one before making decisions. You can find a licensed practitioner through R3, the trade body for insolvency professionals, at r3.org.uk.

Talk to us early

If you can see trouble coming, please do not wait until a formal process has begun. Contact us while there is still time to consider alternatives. We will treat the conversation with discretion and respect, and we will be honest with you about what is and is not possible. Even where insolvency turns out to be the right answer, talking to us early helps the process run more smoothly for everyone.

Where to get free advice

You do not have to work this out alone, and good advice is free. For your business, Business Debtline offers free, confidential and independent debt advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you understand your company's options and prepare for next steps. For a fuller list of free organisations, including how to find a licensed insolvency practitioner, see where can I get free independent debt advice in the UK?.

Whatever stage you are at, reaching out early, to us and to a qualified adviser, gives your company the best chance of a fair and orderly outcome.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

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Tax bills are among the most common pressure points for a trading company under financial strain. HMRC offers a Time to Pay arrangement that can let a business spread a VAT, PAYE or Corporation Tax liability over an agreed period instead of paying it all at once. This is general information; HMRC sets its own criteria and the details depend on your circumstances.

What HMRC tends to look for

• That the company genuinely cannot pay in full now but can pay over time.
• That you have contacted them before the debt is overdue, not after enforcement begins.
• A realistic proposal showing how and when you will clear the balance.

How to approach it

Prepare your figures first, including a short cashflow forecast and the maximum you can commit each month without putting trading at risk. Contact HMRC directly through their business payment support service. Being proactive signals good faith and usually leads to a more workable outcome than waiting for a demand.

If managing both a tax arrangement and a Credicorp Flex or Credicorp Slice repayment is stretching your company, tell us. We can look at your repayment alongside what you have agreed with HMRC so the combined burden stays realistic. Coordinating your creditors deliberately is far better than juggling them in the dark.

See also: What an HMRC Time to Pay arrangement means for my Credicorp payments, How should my company prioritise which bills to pay first?, How to repay your Credicorp loan early.

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Many directors use the words interchangeably, but a cashflow gap and insolvency are quite different things, and confusing them can lead to either unnecessary panic or dangerous delay.

What is a cashflow gap?

A cashflow gap is a timing problem. Your company has the assets, orders, or future income to meet its obligations — it just does not have the cash available right now. A classic example is a business that has invoiced clients for work completed but is waiting 60 days for payment while suppliers are due in 30 days. The underlying business is sound; the issue is the mismatch in timing.

A cashflow gap is usually temporary and can often be resolved by accelerating income collection, deferring non-critical outgoings, or using short-term finance to bridge the shortfall.

What is insolvency?

Insolvency is a more serious legal condition. A company is technically insolvent if it cannot pay its debts as they fall due (cashflow insolvency) or if its total liabilities exceed its total assets (balance-sheet insolvency). Either test can apply. When a company is insolvent, directors have additional legal duties — including a duty to act in the interests of creditors rather than shareholders — and the options for recovery narrow significantly.

Why the distinction matters

If you are in a cashflow gap, you have time and options. Bridging finance, payment plans, and better debtor management can all help. If you are genuinely insolvent, you need professional insolvency advice quickly — from a licensed insolvency practitioner, not a generic financial adviser. Acting early in genuine insolvency can be the difference between a rescue and a compulsory winding-up.

If you are unsure which category applies to your company, a free consultation with an insolvency practitioner or a business support charity such as Business Debtline can help you understand your position without commitment.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: Early warning signs your cashflow is under pressure, Where to get free business debt advice.

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A cashflow problem that is caught early rarely has only one solution. Most limited companies in difficulty have several levers they can pull before the situation becomes a formal insolvency matter — the key is acting before options close off.

Accelerate cash coming in

• Chase overdue invoices immediately — a polite but firm call often releases payments that have simply been overlooked.
• Offer early-payment discounts — some customers will pay within 7 days in exchange for a 1–2% reduction; the cost is often worth the certainty.
• Review your payment terms — switching new contracts to 14-day terms rather than 30 improves the baseline going forward.

Manage cash going out

• Prioritise payments — wages, HMRC obligations, and rent typically take priority over discretionary or deferrable costs.
• Ask for extended terms from suppliers — many will agree if you ask before you default rather than after.
• Review subscriptions and standing orders — companies in difficulty often find unused licences, auto-renewals, or services that can be paused without impact.

Short-term financing options

If a timing mismatch is the core problem, bridging it with finance may be the most straightforward route. A revolving credit facility lets a company draw what it needs and repay as cash comes in, rather than taking a lump sum. For a single large bill, a buy-now-pay-over-instalments product can spread the cost without committing to long-term borrowing. The right option depends on the nature of the gap and the company's trading profile.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: Early warning signs your cashflow is under pressure, Where to get free business debt advice.

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If your company cannot pay a supplier by the due date, the worst thing you can do is go silent. Most suppliers would far rather hear from you early than have to chase repeatedly — and many will work with you if you approach them before the payment is overdue.

Contact the supplier promptly

Call or email as soon as you know there will be a problem. Explain the situation plainly: you have a short-term cashflow gap, you intend to pay in full, and you would like to agree a revised date or a short instalment arrangement. Put any agreement in writing — even a simple email trail protects both sides.

• Be specific: offer a realistic date rather than vague promises.
• If you can pay something now, offer a part-payment to show good faith.
• Ask whether they can suspend late-payment interest or charges while the arrangement is in place.

Understand your legal position

Under the Late Payment of Commercial Debts (Interest) Act 1998, your supplier is entitled to charge statutory interest on overdue invoices between businesses. That does not mean they will — many suppliers waive it for customers they want to keep — but it is worth knowing. Ignoring the debt can also lead to a county court judgment (CCJ) against the company, which damages your credit profile.

Look at your wider cashflow

A missed supplier payment is rarely an isolated event. Use it as a prompt to review all upcoming payments and receivables. Can you accelerate collection from your own customers? Are there non-urgent costs you can defer? Short-term financing options such as a revolving credit facility can sometimes bridge the gap while you stabilise.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: Early warning signs your cashflow is under pressure, How to talk to creditors when your business is struggling.

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If money is tight and a repayment is coming up that your company cannot meet, the single most useful thing you can do is tell us early. Get in touch before the due date, not after it. Reaching out is not a black mark against your company, and it does not make things worse. It gives us the time and the information we need to help, and it usually means more options are open than if a payment has already been missed.

We know this can feel difficult to raise. Cash flow gaps happen to good, well-run businesses, often through no fault of their own. Our job is to work with you, calmly and practically, to find a way through.

Tell us before the due date

The quickest way to start is through our payment arrangement form or the hardship variation form. Use the form that fits your situation so the right team picks it up, and tell us briefly what has changed: a late-paying client, a quiet trading month, an unexpected bill. You do not need to have all the answers worked out. You just need to start the conversation.

When you contact us, it helps to have a rough picture of your company's income and outgoings for the coming weeks, and an idea of what your business could realistically afford to pay and when. That lets us move faster.

What we can do

What we can offer depends on your circumstances, but the usual routes are:

• A short payment arrangement that spreads what is owed over a manageable period.
• A short freeze on payments to give your company breathing space to recover.
• A hardship variation where your situation is more serious or longer-lasting, which changes the terms of the loan to make it affordable.

We will never apply a charge that is not set out in your Business Loan Agreement, and we will explain any change clearly before it takes effect. If you want to understand the full range of help first, read I am struggling to pay, what should I do? and our hardship and forbearance process.

If a direct debit has already failed

A failed direct debit is not a crisis, and it is not the end of the conversation. Contact us as soon as you can so we can stop the situation drifting. The sooner we hear from you, the sooner we can agree a plan and put any further collection activity on hold while we sort it out.

Get free, independent advice

You do not have to face money worries on your own, and good advice costs nothing. For your business, Business Debtline offers free, confidential and independent debt advice for the self-employed and small businesses. You can reach them at businessdebtline.org or on 0800 197 6026. They can help you understand your options, prioritise your debts and prepare for a conversation with us or any other creditor.

For a wider list of free organisations that can help, see where can I get free independent debt advice in the UK?.

A note on how we work

We lend to your company for business purposes, and we do not take a personal guarantee from you as its director. We will always treat you fairly and with respect, and we will be honest about what we can and cannot do. If your circumstances include health, bereavement, caring responsibilities or anything else making this harder, tell us, and we will adjust how we support you. The most important step is the first one: contact us early, and let us help you find a way forward.

See also: How do we avoid making difficulty worse with quick-fix borrowing?, Building a realistic recovery plan after a difficult period, Building a thirteen-week cashflow forecast.

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If your limited company is struggling with debt or cashflow, you do not need to pay for advice to get started. Several well-regarded organisations offer free guidance specifically for businesses, with no obligation and no referral fee.

Business Debtline

Run by the Money Advice Trust, Business Debtline (businessdebtline.org) offers free, confidential debt advice for self-employed people and small businesses, including limited companies. Advisers can help you understand your options, prioritise debts, and communicate with creditors. Available by phone and online webchat.

British Business Bank — Business Support Helpline

The British Business Bank operates a Business Support Helpline (0800 998 1098) that connects businesses in England to local growth hubs, where advisers can help with cashflow planning, finance options, and signposting to specialist services. Equivalent services exist in Scotland (Business Gateway), Wales (Business Wales), and Northern Ireland (Invest Northern Ireland).

Licensed insolvency practitioners

If you are concerned your company may be insolvent rather than just cashflow-squeezed, a licensed insolvency practitioner (IP) is the right person to speak to. Many IPs offer a free initial consultation. You can find a licensed practitioner through the Insolvency Practitioners Association (insolvency-practitioners.org.uk) or the R3 association (r3.org.uk). Be cautious of unregulated debt-management firms that charge upfront fees — a licensed IP is regulated and must put your interests, and your creditors' interests, first.

HMRC Business Payment Support Service

If part of the problem is an upcoming tax bill, HMRC's Business Payment Support Service (0300 200 3835) can discuss Time to Pay arrangements before the deadline passes. It is free to use and calling early significantly improves the outcome.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: The difference between insolvency and a cashflow gap, How to talk to creditors when your business is struggling.

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When a company is under financial pressure, good independent advice is one of the most valuable things you can get, and much of it is free. Speaking to someone outside the business helps you see options clearly and avoid the high-pressure sales of firms that profit from distressed companies.

Reputable places to start

• Your own accountant: often the fastest source of practical, business-specific insight if you already work with one.
• Business Debtline: a free, independent service offering debt advice to self-employed people and small businesses.
• A licensed insolvency practitioner: many offer a free initial conversation; they are regulated and must be properly licensed.
• Local growth hubs and chambers of commerce: useful for signposting and regional support.

How to choose well

Be cautious of any firm promising to make debts disappear, charging large upfront fees, or pushing you toward a single solution before understanding your situation. Genuine advisers explain the range of options and let you decide. Always check that an insolvency practitioner is licensed by a recognised professional body.

If a Credicorp Flex or Credicorp Slice repayment is part of what is worrying you, speak to us directly as well. We can explain your specific options on your facility, which sits alongside the independent advice you take, not in place of it.

See also: Free business debt advice organisations in the UK, Understanding the main business insolvency and rescue options, Where can I get free, independent debt advice in the UK?.

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