Arrears simply means your company is behind on what it agreed to pay. It is a status, not a verdict, and there are clear stages to it. Knowing the shape of the process helps you act at the right moment.
The early stage
When a payment is first missed, our priority is to make contact and understand what is going on. You will hear from us, and we will want to know whether this is a one-off or part of a wider squeeze on the company's cash flow.
The working stage
If the difficulty is ongoing, this is where most cases are resolved. We look at options together, which may include a temporary arrangement, a change to your payment schedule, or another form of support suited to your company's circumstances.
The escalation stage
- If we cannot make contact or no arrangement can be reached, the account moves further along the recovery process.
- This can eventually involve formal recovery steps against the company.
- Almost every escalation can be avoided by engaging with us before it gets there.
How to keep things in the early stage
Respond when we contact you, be straight about what your company can manage, and stick to what you agree. Because this is business lending outside the FCA consumer-credit regime, the Financial Ombudsman Service does not apply, which makes direct dialogue with us all the more important.
See also: What happens, step by step, if a payment is missed?, Can a company with arrears elsewhere still apply? and Funding stock for a brand-new product line.