If a scheduled payment is not collected — usually because the business account did not hold enough on the due date — your account is treated as in arrears until the amount is brought up to date. The most important thing is to contact us early; problems are far easier to solve before they build up.
What typically happens
- We attempt the Direct Debit on the due date. If it fails, we let you know.
- We may reattempt the collection or ask you to make the payment by transfer or card.
- Charges or additional amounts may apply as set out in your agreement. We will not invent costs — anything that applies is in the terms you signed.
What it does not involve
Because the loan is to your company and we take no personal guarantees from directors, a missed business payment does not expose directors' personal assets in the way a personally guaranteed debt would. It does, however, affect the company's record with us and can influence future borrowing decisions.
The single best step
Get in touch as soon as you know a payment will be short. We can talk through your options, agree a way forward, and help you avoid the situation getting worse. As an exempt business lender we are not covered by the Financial Ombudsman Service, but we do take a fair and constructive approach to companies that engage with us.
See also: What happens if my Direct Debit fails?, What happens if I miss a payment?, How is my payment schedule set up?.