If a scheduled Direct Debit payment is returned unpaid by your bank — for example because of insufficient funds — Credicorp applies a missed-payment administration charge. The specific amount is set out in your credit agreement before you sign, so you will always know in advance what the charge is.
What triggers the charge
The charge is triggered when a Direct Debit presentation is returned to us by your bank unpaid. A payment that is simply late (because you rescheduled it in advance with our team) is treated differently from a payment that bounces on presentation. If you know a payment date is going to be a problem, contact us before the due date — we can discuss your options and, in appropriate cases, arrange a revised payment date without the missed-payment charge applying.
What happens after a missed payment
After a returned payment, we will contact your company to arrange collection of the overdue amount and the administration charge. Repeated missed payments may affect your company's ability to access further funding and could be reported to credit reference agencies. Your agreement sets out the full consequences of sustained non-payment.
How to avoid the charge
Keep sufficient funds in the nominated account on each collection date. If your cashflow is tight, speak to us in advance — particularly if you hold a Credicorp Flex facility, where you may be able to draw funds to cover the period. For Business Loan customers, we can explain the options available for managing a difficult payment period before it becomes a missed one.
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 fees does a Business Loan carry?, How are Credicorp charges disclosed before signing?, Does settling early actually save money?