Reduced payment plan lowers a company's regular payment to an affordable level over a longer period, used when income has fallen but not stopped.
In practice
A reduced payment plan re-sizes payments to the income a company actually has now. Because payments are lower, the balance clears more slowly and interest at 0.25% per day runs for longer — but the 100% cap means the total repaid still cannot exceed double 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 a reduced payment plan does to your balance, The difference between a payment holiday and a reduced payment plan, Payment arrangement, defined.