A failed collection can lead to a missed-payment charge, and it is fair to want to understand how that figure is arrived at rather than treat it as a black box.
Where it comes from
The missed-payment fee is a set charge named in your Business Loan Agreement — it is disclosed before you sign, not invented after the event. It is intended to reflect the cost of a missed collection, not to profit from it. See how late-payment charges work and what is charged if my company misses a repayment.
The bank fee on top
Separately, your own bank may charge you for a failed Direct Debit — that is the bank's fee, not ours. So a single failed collection can cost twice, which is why prevention is worth the effort. See what a missed Direct Debit costs.
How to avoid it
Keep the collection account funded, hold a small buffer, and flag a tight month before the date. See how to avoid a failed-payment fee. If money is genuinely tight, tell us first — asking for help costs nothing. See if you can't make this month's payment.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance arranged outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or the FSCS, though you can still raise a complaint with us and we will handle it fairly.
See also: What does a missed Direct Debit cost?, How late-payment charges work, How to avoid a failed-payment fee.