"Arrears" is just the word for the amount your company is behind. Understanding how it is calculated takes the mystery out of the number on your statement.
What makes up the arrears figure
Your arrears are the scheduled payments you have missed to date. Separately, interest continues to accrue at 0.25% per day on the whole outstanding balance for as long as it is unpaid, so the total owed edges up each day until payments resume. The two are distinct: clearing the arrears brings you back onto schedule, while the daily interest is what accumulating time costs.
The cap still holds
However long a balance sits in arrears, the 100% total-cost-of-credit cap means you can never repay more than twice what you originally borrowed. The daily interest cannot push the total past that ceiling. If you want the exact position at a point in time, ask us for a settlement figure and we will set it out in full.
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 arrears means and whether it affects my credit file, Does interest keep building while my company is in arrears?, What happens when your company falls into arrears?.