Forbearance means the steps a lender takes to give a borrower temporary relief when they are finding it hard to keep up with repayments. Rather than pressing straight for the full amount due, the lender agrees a short-term change to help the borrower through the difficult period.
In practice
For a company borrowing from Credicorp, forbearance might take the form of a payment holiday, a period of reduced payments, rescheduling the balance across the agreed term, or a formal plan to clear arrears in stages. The right form depends on what caused the difficulty and what the company can realistically afford.
- It is temporary, not a permanent write-off of what is owed.
- It is agreed between borrower and lender, not imposed.
- It usually has some effect on the balance, the rate shown in your offer, or the term, which we always explain first.
Why it matters
Forbearance recognises that a fundamentally sound business can hit a rough patch. Used well, it bridges a gap so the company recovers rather than slides into deeper trouble. The key to accessing it is early contact, because the sooner a lender knows, the more options remain open. Credicorp lends to limited companies and LLPs for business purposes, so any forbearance is a commercial arrangement outside the consumer-credit regime.
See also: Glossary: default, Glossary: vulnerability, Glossary: Breathing Space.