The idea of clearing arrears in a single payment can feel impossible. It is also unnecessary — arrears can be caught up gradually.
An arrangement spreads the catch-up
A payment arrangement is designed exactly for this: it spreads the arrears over instalments alongside, or instead of, your normal payments, at a level the company can sustain. You return to the normal schedule once caught up.
Cost while you catch up
Interest continues at 0.25% per day on the outstanding balance while you clear the arrears, and the 100% cap means the total repaid never exceeds double the amount borrowed. Catching up steadily beats a payment that breaks the business.
Set it up in writing
We confirm the catch-up plan in writing so it is clear and agreed. Use the Payment Arrangement form to start.
Steady instalments are almost always better than a crippling lump sum.
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: Clearing arrears without breaking the rest of the business, Can I settle my company's arrears with a lump sum?, What a partial payment does — and does not — fix.