When trade falls away sharply and stays down — a lost anchor contract, a market that has moved — a one-off fix will not hold. You need payments re-sized to the income you genuinely have now.
Reduced payments or a variation
A reduced payment plan lowers your regular payment to a level the current income supports; a hardship variation changes the loan terms themselves where the drop looks lasting. Both keep the loan alive and affordable rather than letting it break.
Be candid about whether it is temporary
The right tool depends on whether the fall is a dip or a new normal. Share honest figures on income and essential outgoings so we set payments you can actually keep to. Interest continues at 0.25% per day and the 100% cap remains your ceiling.
Fix the business too
Forbearance buys time; it does not replace a turnaround. Use the breathing space to cut non-essential costs, chase debtors and rebuild a pipeline. Free advisers can help you shape a recovery plan.
Apply with the Hardship Variation form, or call us to discuss a reduced plan.
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 if my company's difficulty is permanent, not temporary?, What a reduced payment plan does to your balance, Building a recovery plan after a difficult period.