Directors come and go — through retirement, a fallout, ill health, or a planned handover. When this happens while a company is behind on its repayments, the natural worry is whether the loan somehow follows the person out of the door, or whether their leaving disrupts the account. It does neither. The clearest way to think about it is that the agreement was always with the company, and the company carries on.
The obligation stays with the company
Credicorp lends to your limited company or LLP for business purposes, not to any individual sitting behind it. A director is an officer of the company, not the borrower. So when a director resigns, the loan, the balance, the schedule and any arrears all remain exactly where they were — with the company. Nothing about the debt is cancelled, paused or reduced because a signatory has changed, and nothing transfers to the person leaving.
No personal liability follows the departing director
We do not take personal guarantees on Credicorp Flex or Credicorp Slice, so there is no personal liability for a director to "leave behind" or be released from in the first place. A resigning director does not take a slice of the company's arrears with them, and the directors who remain do not inherit a personal debt either. The liability is the company's throughout. (See also will missing a payment affect the directors personally?)
Who we then deal with
We deal with whoever has authority to act for the company. Practically, that means a remaining director, a newly appointed director, or an authorised member of your team. If the person who left was our day-to-day point of contact, the most useful thing you can do is tell us promptly who now speaks for the company, so reminders, calls and any arrangement reach the right person rather than going stale.
- Confirm the new or remaining contact for the account.
- Update the authorised signatory or account holder if that has changed.
- Let us know if an accountant or adviser will handle the conversation — you can authorise a representative to deal with us at any time.
A handover is the moment to re-engage, not go quiet
A change in the boardroom is exactly when an account can drift, because everyone assumes someone else is dealing with it. While the company is in arrears that gap matters. The remaining or incoming directors still have their normal duties under company law — including the duties that apply when a company is in financial difficulty — and those duties point the same way we do: deal with it openly and early. If you are not sure who internally should pick this up, see who to talk to inside Credicorp about payment difficulty.
What happens if no one steps in
If a director leaves and the company simply stops engaging, the arrears do not pause — the account continues along the normal path, and where nothing is resolved it can move toward formal recovery against the company. That action is directed at the company, never at a former or current director personally. As ever, it is almost always avoidable: a quick call from whoever now holds the reins is usually all it takes to keep the account on the support path.
This is business lending outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply, and our agreement with the company governs throughout. If a director has recently left and you want to confirm who we should be speaking to, contact us or raise it through the General Support Enquiry form — we would always rather sort the handover early than after things have drifted.
See also: A debt collection agency has contacted me - is it genuine?, Can I get a payment extension?, Can my company make a partial payment if it cannot pay in full?.