Arrears describes the situation where a company has fallen behind on the repayments it agreed to make. If a scheduled repayment is missed or only partly met, the unpaid portion becomes arrears, and the account is said to be in arrears.
What happens if you fall behind
Being in arrears can have consequences set out in your agreement, which may include charges where they apply and an impact on the company's standing with us. The most important thing is that arrears are easier to resolve the sooner they are addressed.
- Contact us as soon as you think a repayment may be missed.
- Tell us about any change in the company's circumstances.
- The earlier we talk, the more options there usually are.
If your company is struggling
Cash flow can be unpredictable, and difficulty is not a failing. We would always rather hear from you early than after several missed repayments. Where a business is in genuine difficulty, we look for a workable way forward.
Credicorp lends only to UK limited companies and LLPs for business purposes, and we do not take personal guarantees from directors. If your Credicorp Flex or Credicorp Slice account is heading into arrears, reach out to our team straight away.
See also: Getting your company back on track after arrears, What does it mean to be in arrears?, How arrears affect your company's future borrowing with us.