Arrears means the payments a company has fallen behind on. Being in arrears is a state you can step out of by paying what is due or agreeing an arrangement.
In practice
Arrears is simply the amount a company is behind on its schedule. It is distinct from default, which is a later, formal step. Interest continues at 0.25% per day on the outstanding balance while arrears exist, capped so the total never exceeds double the sum borrowed. Talking to us early is what stops arrears building.
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: How arrears are worked out day by day, The difference between arrears and default, What does 'in arrears' mean?.