Dealing with difficulty is harder when the language is unfamiliar. This is a quick plain-English guide to the terms you are most likely to meet, each linked to a fuller explanation.
Being behind and what follows
Arrears means you are behind on payments; default is a later, formal step after arrears go unaddressed; recovery action is the last-resort process to recover an unpaid debt.Getting help
Forbearance is the umbrella term for lender help; a payment arrangement, payment holiday, reduced payment plan and hardship variation are its main forms; Time to Pay is HMRC's version for tax.The serious end
Insolvency is when a company cannot pay its debts; a CVA and administration are formal rescue or wind-down processes. Understanding these helps you know when to seek specialist advice.Follow the links to the fuller definitions, and take advice if the serious terms apply.
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: Forbearance, defined, Arrears, defined, Insolvency, defined.