Hardship variation is a change to the terms of a loan to reflect a genuine, often longer-term, change in a company's circumstances.
In practice
A hardship variation goes further than a temporary arrangement: it varies the loan itself so it is affordable over a longer period, for a serious or lasting difficulty such as a lost contract or a permanent fall in income. It is agreed after a review of the company's income and essential outgoings, and applied for with the Hardship Variation form.
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 is a hardship variation?, How long can forbearance last on a business loan?, Forbearance, defined.