Learn: financial difficulty

How to write to a creditor proposing a payment plan

When you approach a creditor in writing, structure and specifics matter. A clear proposal shows you have a grip and makes a yes far more likely.

State the position plainly

Open with the facts: who you are, the account or debt in question, and a brief, honest explanation of the difficulty. No excuses, no drama — just the situation.

Make a specific, realistic offer

Propose an exact plan: how much you can pay, how often, and from when. An offer grounded in a genuine cash-flow forecast is credible; a vague request for time is not.

Confirm and follow up

Ask for written confirmation of any agreement, keep a copy, and stick to it. If circumstances change, write again promptly rather than simply missing a payment.

The same approach works with us — set out a realistic plan and we will work with it.

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: How to talk to creditors when your business is struggling, How to prepare before you call us about payment trouble, A one-page checklist before you contact us about arrears.

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