Both a one-off Business Loan and a revolving Flex facility can be given breathing space, but because the products work differently, so does the pause.
On a one-off Business Loan
A short freeze pauses the scheduled payments for an agreed time. Interest continues at 0.25% per day on the balance, and the deferred payments plus accrued interest are added back to the schedule or collected at the end of the pause.
On a revolving Flex facility
With Flex the focus is usually on pausing new drawdowns and agreeing a reduction of the drawn balance, rather than a fixed instalment holiday. Interest accrues on what is drawn, so bringing the balance down is what lowers the cost.
What stays the same
Whichever product, the pause is agreed in writing, the cost protections apply, and there is no personal guarantee. Early contact gives you the most options either way.
Tell us which facility you hold and we will explain exactly how a pause would work for you.
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 a payment holiday and a reduced payment plan, Can Credicorp pause my loan repayments temporarily?, Managing difficulty on Credicorp Flex versus Credicorp Slice.