You can cancel a Direct Debit whenever you like — that is your right, and your bank will act on it straight away. The one thing to understand first is that cancelling the Direct Debit does not cancel the payment. The instruction at your bank is only the method of collection; the scheduled repayment on your loan is still due on its date. So if you cancel and put nothing in its place, the collection simply will not happen, and the payment is treated as missed.
That is easy to avoid. Whether the company is switching banks, tidying up its mandates, or you just prefer to pay another way, the rule is the same: tell us before you cancel, so we can make sure the next payment still reaches us. This page explains what happens to the loan when a mandate is cancelled, how to move collections to a different business account, and the other ways to pay that keep everything on track.
A cancelled Direct Debit removes the automatic collection but leaves the payment due. If you let us know first, we can move the instruction to another account, agree another way for you to pay, or — if money is tight — look at adjusting the schedule with you. Cancel silently and the most likely outcome is a missed payment.
What happens to the loan if you cancel the mandate at your bank
When you cancel a Direct Debit through your bank or banking app, the bank stops honouring our collection instruction. We are usually notified that the mandate has lapsed, but that notice does not change the loan itself. Here is what actually happens:
- The balance and schedule are unchanged. Cancelling the mandate does not reduce, pause or settle anything. Every scheduled payment is still due on the date shown in your repayment schedule.
- The next collection will not be taken. With no live instruction, there is nothing for us to collect against — so unless you pay another way, that payment goes unpaid.
- An unpaid scheduled payment counts as missed. A cancelled mandate is one of the most common reasons a collection does not go through. Once a due payment is not made, it is treated as missed until it is settled — see what happens if my Direct Debit fails for exactly what we do next.
None of this is a trap. If you tell us in advance, a cancellation is completely routine — we line up the next payment a different way and nothing is ever missed. The problem only arises when a mandate is cancelled with nothing arranged to replace it.
How to move collections to a different business account
If the company has switched business banks or opened a new account, you do not cancel and start from scratch — you move the Direct Debit to the new account so collections continue without a gap. Because this touches the company's money, every change is verified before it takes effect.
- Set up the new instruction before you cancel the old one. Moving the Direct Debit to the new account is the safe way to switch banks. The full steps — and how we keep the change secure — are in how to set up, change or cancel a Direct Debit and in updating your bank details.
- Have the new account's details ready. You will need the business account name, the sort code and the account number of the new account. We never need a card number for a Direct Debit, and we will never ask for online-banking passwords or one-time codes.
- Time it around your schedule. Where possible, put the new instruction in place before the next collection date so there is no gap. If a collection falls due during the switch, tell us — we can move that one payment to card or transfer while the new mandate beds in.
- Check your schedule afterwards. Sign in to the Payments area and confirm the next collection will come from the right account. Your exact dates and amounts always live in the portal, never in this help centre.
If you cancel the Direct Debit at the old bank and rely on setting a new one up "soon", a collection can slip through the gap and be missed. Set the new instruction up first, or tell us the switch is happening so we can cover any payment that falls due in between.
Other ways to keep paying, so cancelling is never a missed payment
You do not have to keep a Direct Debit running to stay on top of the loan. If you would rather pay each scheduled amount yourself, that is fine — the important thing is that the payment still reaches us on or before its due date. Once you have cancelled the mandate, use one of these:
- Debit card. Pay online through the secure card option on our Make a Payment page, or by phone during office hours. Card payments are normally applied the same working day, which makes a debit card the surest way to land a payment in time when you are close to a due date.
- Bank transfer. Send the payment from the company's bank account using the payment details on your statement, and always quote your account or reference number so we can apply it correctly. A transfer can take a little longer to settle than a card payment, so allow time before the due date.
For a side-by-side of every method, see how can I make a payment, and for how quickly each one lands, see how long a payment takes to clear. If you are paying right up against the deadline, a same-day debit card payment is the safest choice.
The convenience of a Direct Debit is that you never have to remember a date. If you cancel it to pay manually instead, put a reminder in your own calendar for each scheduled payment, check your schedule in the portal for the exact dates, and review changing your communication preferences so payment messages reach the right channel. Missing one because there was no automatic collection counts just the same as any other missed payment.
If you want to cancel because money is tight
Cancelling a Direct Debit is sometimes a reflex when cash flow is under pressure — but on its own it does not help, because the payment is still due and stopping the collection just turns it into a missed one. If the real issue is that the company is struggling to keep up, please do not just switch off the mandate: talk to us early. There is no penalty for asking, and asking for help is not reported as a default.
We would always rather agree something sensible than see a payment missed. Depending on the company's position we can look at a short payment freeze, a reduced-payment arrangement or a longer variation. See help if you are struggling to make a payment for what is available, and what 'arrears' means and whether it affects your credit file if you are worried about a payment that has already been missed.
Where your exact figures live
This page explains how cancelling and moving Direct Debits works in general terms only. The specific amounts, dates and the account a Direct Debit is set up on are held in your portal — sign in to the Payments area to see or change them. We keep this help centre figure-free on purpose, so nothing here ever contradicts what you see in your live account.
A note on how this lending works: Credicorp lends to limited companies and LLPs, and a Business Loan is exempt from FCA consumer-credit regulation under Article 60B of the FSMA Regulated Activities Order 2001. The company is the borrower, there is no personal guarantee, and the Direct Debit is set up on the company's business bank account — so it is not a personal debt on the director's own credit file. This kind of lending is not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme. The Direct Debit Guarantee that lets you cancel at any time is provided by your bank and applies to your Direct Debits in the normal way.
See also: Can I change the date my payment is taken?, Can I make a one-off extra payment without changing my Direct Debit?, Can I pay a Flex drawing from a different card or account?.