Payment holiday

Q: Payment holiday

Payment holiday is a temporary, agreed pause on repayments, granted for genuine short-term difficulty. Interest continues to accrue during the pause. In practice A payment holiday, or short freeze, gives a company breathing space — for example while it chases a large invoice or recovers from a one-off shock. It is not automatic; it is agreed for a defined period. Because interest keeps building at 0.25% per day, the deferred amount is added back to the schedule, so a holiday suits truly short-term gaps. 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.

Payment holiday is a temporary, agreed pause on repayments, granted for genuine short-term difficulty. Interest continues to accrue during the pause.

In practice

A payment holiday, or short freeze, gives a company breathing space — for example while it chases a large invoice or recovers from a one-off shock. It is not automatic; it is agreed for a defined period. Because interest keeps building at 0.25% per day, the deferred amount is added back to the schedule, so a holiday suits truly short-term gaps.

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.

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