Payment arrangement is an agreement to spread missed or upcoming payments over a period a company can manage, before returning to the normal schedule.
In practice
A payment arrangement is one of our main forbearance tools. It is built around what the company can genuinely afford, confirmed in writing, and reviewed as circumstances change. Interest continues at 0.25% per day while it runs, and the 100% cost-of-credit cap still applies, so the total repaid never exceeds twice the amount borrowed.
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 repayment arrangement and how to set one up?, How a payment arrangement is calculated, Forbearance, defined.