Forbearance is the umbrella term for the ways a lender can ease the pressure on a borrower who is genuinely struggling, rather than pushing straight to recovery. For a Credicorp Business Loan that can mean a payment arrangement, a short freeze, a reduced payment plan or a hardship variation of the terms themselves. None of these wipes out what the company owes, but each buys time and makes the debt manageable while the business recovers.
What forbearance does and does not do
Forbearance changes how and when you repay; it does not usually change how much you owe in principal. Interest is charged at 0.25% per day on the outstanding balance and continues to accrue during most forms of forbearance, so a longer arrangement costs more in total. The 100% cost cap still applies throughout — you will never repay more than double the amount borrowed, whatever forbearance is in place — and there is never a personal guarantee behind the debt.
Asking is not a black mark
Requesting forbearance early is a sign of good management, not a red flag. We would far rather agree a realistic plan than watch a solvent company tip into arrears. Contact us as soon as you can see trouble coming and we will talk through the options that fit your circumstances.
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 forbearance options are available for business borrowers?, What is a hardship variation?, Our hardship and forbearance process.