When your company needs short-term relief, two of the most common options are a payment holiday and a reduced-payment plan. They sound similar but work differently, and choosing the right one matters for your balance and your term.
A payment holiday
A payment holiday pauses one or more scheduled payments entirely for an agreed period. Nothing leaves your account during the pause. This suits a company facing a sharp but temporary gap, for example while waiting on a large invoice to settle.
- Payments stop completely for the agreed window.
- The paused amount is dealt with afterwards, usually by extending or rescheduling.
- Best for short, defined cash-flow gaps.
A reduced-payment plan
A reduced-payment plan keeps payments flowing but lowers them for a set period. This suits a company that can still pay something each month but not the full amount, for example during a slow trading season.
- You keep paying, just less, for the agreed period.
- It keeps momentum on the balance rather than pausing it.
- Best when some affordability remains.
Which is right for you
We will talk through your trading pattern and what is realistic, then explain the effect on your balance and the rate shown in your offer. Both options are available depending on your circumstances and whether you hold Credicorp Flex or Slice.
See also: Managing payment difficulty on Credicorp Flex versus Credicorp Slice, Can my company request a payment holiday?, What is a Debt Management Plan and how does it affect my loan?.