A late payment can add a little to what the company owes, so it is worth understanding the components — and how quick action keeps them small.
The two possible additions
First, a set late- or missed-payment charge named in your agreement may apply — see how late-payment charges work and what is charged if my company misses a repayment. Second, on an interest-bearing facility, interest keeps accruing on the outstanding amount while it is unpaid — see does interest keep building in arrears.
The bank fee on top
Separately, your own bank may charge you for a failed Direct Debit. See what a missed Direct Debit costs.
Keeping it minimal
Pay the missed amount promptly, make sure the next collection clears, and — if money is tight — tell us before the date rather than after. Asking for help costs nothing and is never treated as a default. See catching up after one missed collection and if you can't make this month's payment.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance arranged outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or the FSCS, though you can still raise a complaint with us and we will handle it fairly.
See also: How late-payment charges work, What does a missed Direct Debit cost?, Does interest keep building in arrears?.