A payment arrangement spreads what you owe over instalments your company can actually manage. The figure is not plucked from the air — it is built from your real numbers.
The inputs we use
We look at your regular business income, your essential outgoings (wages, rent, stock, tax) and the money left over once those are met. The arrangement is set so the instalment fits comfortably inside that surplus, with a margin so one slow week does not break the plan. We would rather agree a lower payment you can keep to than a higher one you will miss.
Interest and the cap during an arrangement
Interest continues at 0.25% per day on the outstanding balance while the arrangement runs, so a longer plan costs more overall. The 100% cost-of-credit cap still applies, so the total you repay is limited to twice the amount borrowed no matter how long the arrangement takes. We will show you the full revised figures before you agree, and confirm them in writing.
Getting your numbers ready
A simple, honest income-and-outgoings summary is all we need to start. If you would like help preparing it, Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026.
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 we decide on a payment arrangement for your company, Building a thirteen-week cashflow forecast.