A key machine, vehicle or piece of kit failing can force sudden, unavoidable spending and knock a loan payment off course. It is a genuine one-off shock, and there is room to manage it.
Prioritise getting trading again
If the equipment is essential to earning, repairing or replacing it usually has to come first — there is no point protecting a loan payment if the company cannot trade. Work out what the repair costs and what that leaves for the loan this period.
Ask us for short-term room
A short payment extension or arrangement can give you the room to fund the repair without missing the loan payment outright. Interest continues at 0.25% per day over the extra time, and the 100% cap holds. Tell us before the payment is due.
Plan for the next one
Once you are trading again, build a small maintenance and replacement reserve so the next breakdown is a budgeted event rather than a cash-flow crisis.
Use the Payment Extension or Payment Arrangement form to set this up.
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 options are there if my company cannot pay this month?, Can I pause payments if my company hits a cash-flow gap?, Restructuring costs to protect your business.