Learn: financial difficulty

If something has gone wrong, or you are unhappy with how we have handled your company's loan, we want to hear about it. A complaint is not a nuisance to us; it is how we put things right for you and improve for everyone else. We will look into what you raise fairly, take it seriously, and keep you informed along the way.

Here is how to complain, the stages your complaint goes through, and what your options are if you are still not satisfied at the end.

How to complain

You can raise a complaint in whatever way is easiest for you. The most direct route is through our feedback and complaints page, which tells you exactly where to send it and what to include. It helps if you can tell us what happened, when, how it has affected you or your company, and what you would like us to do to put it right. If you need to complain in a particular format, or need extra support to do so, just let us know and we will make that work.

The stages we follow

Our process is designed to be clear and reasonably quick:

1. We acknowledge your complaint so you know it has reached the right team and is being looked into.
2. We investigate, reviewing what happened, listening to any call recordings where relevant, and checking your complaint against your Business Loan Agreement and our records.
3. We respond. Where we can resolve things quickly, we will. Where it needs more time, we will keep you updated on progress and tell you when to expect an answer.

You can read more about what to expect in what FOS and FSCS cover, which also explains the escalation point below.

Our final response

When our investigation is complete, we will send you a final response. This sets out what we found, our decision, and our reasons, in plain language. If we got something wrong, we will say so and explain how we will fix it. If we do not uphold your complaint, we will explain why, clearly and honestly, so you understand the decision even if you do not agree with it.

If you are still not satisfied

It is important to be straight with you about this. Because we lend to companies for business purposes, this product is not covered by the Financial Ombudsman Service (FOS), and it is not covered by the Financial Services Compensation Scheme (FSCS) or the Business Banking Resolution Service. That is a feature of business lending to a body corporate, not a gap we have chosen, and it is explained further in what FOS and FSCS cover.

This means that if you remain unhappy after our final response, the final route of escalation is the courts, rather than an ombudsman. We hope it never comes to that, and the great majority of complaints are resolved well before then. We would always rather understand your concern and put it right ourselves.

Getting independent help

If your complaint sits alongside wider money worries, free and independent advice is available for your business from Business Debtline at businessdebtline.org or on 0800 197 6026. Whatever the issue, telling us is the best place to start, and we will treat your complaint with the seriousness and respect it deserves.

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When a company is finding it hard to keep up with repayments, we would much rather work with you than leave you to struggle. Here is how our hardship and forbearance process works, so you know what to expect before you get in touch. The aim is always the same: to find an arrangement that is realistic for your business and that gets the loan back on a sustainable footing.

Forbearance simply means giving a borrower room to recover, rather than pressing for payment your company genuinely cannot make. It is a normal, sensible part of lending responsibly, and asking for it is not something to feel awkward about.

Step one: tell us what has changed

Everything starts with a conversation. Contact us, ideally before a payment is missed, and tell us what has happened and how it is affecting your cash flow. We will listen, ask a few questions about your company's income and outgoings, and look at what is affordable. Honest figures help us help you, even when the picture is not rosy.

The options we can consider

Depending on your situation, we may agree one of the following:

• A payment arrangement. If the difficulty is short-term, we can spread what is owed over a period your company can manage, then return to the normal schedule.
• A short freeze. Where you need breathing space, for example while you chase a large invoice or recover from a one-off shock, we may pause payments for an agreed time.
• A hardship variation. If the difficulty is more serious or likely to last, we can vary the terms of the loan itself to make it affordable over a longer period. You can read more in what is a hardship variation?.

We will talk through which option fits, explain what it means in plain terms, and confirm the new arrangement in writing so there is no confusion.

What we will and will not do

We will treat you with respect, keep your information confidential, and be clear about every step. We will never apply a charge that is not already set out in your Business Loan Agreement. We do not invent fees, and we do not add surprise costs as a penalty for being in difficulty. If a variation changes what you will pay overall, we will show you exactly how, and the figures will always trace back to the agreement you signed and the Key Information Sheet (KIS) you received.

Because we lend to your company for business purposes and take no personal guarantee from its director, our focus is on the company's ability to recover. We will be straight with you about what is possible.

Get independent advice first if you want to

You are always welcome to take free, independent advice before or during this process, and we would encourage it. Business Debtline gives free, confidential debt advice to small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you work out a budget and prioritise your debts. For the full picture of free help available, see where can I get free independent debt advice in the UK?.

What happens after an arrangement is agreed

Once we have agreed a way forward, we will put it in place and confirm the details to you. We will also pause unnecessary contact and any further collection steps while you stick to the new plan. If your circumstances change again, for better or worse, tell us, and we will review the arrangement. Plans can be adjusted; the important thing is to keep the conversation open. Reaching out early, and staying in touch, is what makes a good outcome far more likely.

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Life does not stop while a loan is being repaid. Sometimes a director or someone close to them is going through something difficult, and that can make managing money and dealing with a lender much harder. If that is you, please tell us. We can put extra support in place, and asking for it is straightforward. It never affects the decision on your company's application or the way we treat you, except to make sure we look after you properly.

We take this seriously because it is the right thing to do. Anyone can find themselves needing a bit more help, sometimes suddenly, sometimes for a short while. We want you to feel able to ask.

What counts as needing extra support

There is no fixed list, and you do not need a label to qualify. People commonly ask for extra support because of:

• Health, including a physical illness, a mental-health condition, a disability, or a recent diagnosis.
• Bereavement, such as the death of a business partner, family member or someone close.
• Caring responsibilities that take up time and energy.
• A major life event, such as relationship breakdown, or a sudden change in circumstances.
• Communication needs, for example if you find phone calls hard, need information in large print, or need a little more time to take things in.

This is not exhaustive. If something is making this harder for you, that is reason enough to tell us.

How we adjust

Once we know, we tailor our support to you. Depending on what helps, that can mean giving you more time to respond, communicating in a way that suits you, sending documents in an accessible format, speaking with someone you nominate to help you, or being especially careful and patient in how we handle your account. If money is also tight, we can look at the payment options described in our hardship and forbearance process at the same time.

You can read more about our approach on our vulnerability page.

How to tell us

You can let us know whenever it suits you, and you only need to tell us once. The simplest way is to complete the Additional Support Needs form, which goes straight to the right team. For step-by-step guidance, see I need extra support, how do I tell you?. You can share as much or as little detail as you are comfortable with; even a short note helps us understand what you need.

Your privacy

What you tell us is treated sensitively and kept confidential, and it is only used to support you. It does not count against your company in any way. We will record what helps so that you do not have to explain yourself again every time you contact us, and you can ask us to update or remove those notes whenever you like.

You are not on your own

Alongside the support we provide, free and independent help is available. For business money worries, Business Debtline offers free, confidential advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. If a director needs personal support, organisations such as Citizens Advice can help too. Whatever you are dealing with, telling us is the first step, and we will take it from there with care.

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Insolvency is a frightening word, and if your company is heading towards being wound up or entering administration, the last thing you need is uncertainty about what it means for your loan. Here are the basics, set out calmly and honestly. The most important message is this: talk to us early. The sooner we understand your situation, the more we can do to help, and the more options are likely to be open.

Facing financial difficulty does not make you a failure as a director. Many capable people go through it. What matters now is getting the right information and the right advice.

A quick note on the terms

These processes are formal, and they have specific meanings:

• Administration is a process that aims to rescue a company as a going concern, or to get a better result for creditors than winding up would, by placing it under the control of a licensed insolvency practitioner.
• Winding up (liquidation) is the process of closing a company down and distributing whatever assets remain to those it owes money to, in an order set by law.

Which process applies, and what it involves, depends on your company's circumstances, so independent advice is essential.

What happens to the loan

We lend to your company, not to you personally, and we do not take a personal guarantee from its director. That is an important point: the loan is the company's liability. If the company becomes insolvent, we become one of its creditors, and the loan is dealt with through the formal process alongside the company's other debts, under the control of the insolvency practitioner.

Before things reach that stage, it is well worth exploring whether difficulty can be resolved another way. Our hardship and forbearance process sets out the payment arrangements, short freezes and variations we can sometimes put in place to help a company recover without a formal insolvency at all.

The role of a licensed insolvency practitioner

A licensed insolvency practitioner is a qualified, regulated professional who administers formal insolvency processes. They take control of the situation, deal with creditors including us, and act in line with their legal duties. If you are considering administration or winding up, you should take advice from one before making decisions. You can find a licensed practitioner through R3, the trade body for insolvency professionals, at r3.org.uk.

Talk to us early

If you can see trouble coming, please do not wait until a formal process has begun. Contact us while there is still time to consider alternatives. We will treat the conversation with discretion and respect, and we will be honest with you about what is and is not possible. Even where insolvency turns out to be the right answer, talking to us early helps the process run more smoothly for everyone.

Where to get free advice

You do not have to work this out alone, and good advice is free. For your business, Business Debtline offers free, confidential and independent debt advice for small businesses and the self-employed at businessdebtline.org or on 0800 197 6026. They can help you understand your company's options and prepare for next steps. For a fuller list of free organisations, including how to find a licensed insolvency practitioner, see where can I get free independent debt advice in the UK?.

Whatever stage you are at, reaching out early, to us and to a qualified adviser, gives your company the best chance of a fair and orderly outcome.

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If money is tight and a repayment is coming up that your company cannot meet, the single most useful thing you can do is tell us early. Get in touch before the due date, not after it. Reaching out is not a black mark against your company, and it does not make things worse. It gives us the time and the information we need to help, and it usually means more options are open than if a payment has already been missed.

We know this can feel difficult to raise. Cash flow gaps happen to good, well-run businesses, often through no fault of their own. Our job is to work with you, calmly and practically, to find a way through.

Tell us before the due date

The quickest way to start is through our online forms. Use the form that fits your situation so the right team picks it up, and tell us briefly what has changed: a late-paying client, a quiet trading month, an unexpected bill. You do not need to have all the answers worked out. You just need to start the conversation.

When you contact us, it helps to have a rough picture of your company's income and outgoings for the coming weeks, and an idea of what your business could realistically afford to pay and when. That lets us move faster.

What we can do

What we can offer depends on your circumstances, but the usual routes are:

• A short payment arrangement that spreads what is owed over a manageable period.
• A short freeze on payments to give your company breathing space to recover.
• A hardship variation where your situation is more serious or longer-lasting, which changes the terms of the loan to make it affordable.

We will never apply a charge that is not set out in your Business Loan Agreement, and we will explain any change clearly before it takes effect. If you want to understand the full range of help first, read I am struggling to pay, what should I do? and our hardship and forbearance process.

If a direct debit has already failed

A failed direct debit is not a crisis, and it is not the end of the conversation. Contact us as soon as you can so we can stop the situation drifting. The sooner we hear from you, the sooner we can agree a plan and put any further collection activity on hold while we sort it out.

Get free, independent advice

You do not have to face money worries on your own, and good advice costs nothing. For your business, Business Debtline offers free, confidential and independent debt advice for the self-employed and small businesses. You can reach them at businessdebtline.org or on 0800 197 6026. They can help you understand your options, prioritise your debts and prepare for a conversation with us or any other creditor.

For a wider list of free organisations that can help, see where can I get free independent debt advice in the UK?.

A note on how we work

We lend to your company for business purposes, and we do not take a personal guarantee from you as its director. We will always treat you fairly and with respect, and we will be honest about what we can and cannot do. If your circumstances include health, bereavement, caring responsibilities or anything else making this harder, tell us, and we will adjust how we support you. The most important step is the first one: contact us early, and let us help you find a way forward.

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