A write-off is an accounting decision by a lender to remove a debt from the figures it expects to recover. It reflects the lender's own books rather than a gift to the borrower.
Write-off versus debt forgiveness
People sometimes assume a write-off cancels the obligation to pay. In practice, a lender can write a debt off in its accounts while the borrower may still legally owe it. Forgiveness, where the debt is genuinely released, is a separate decision.
- A write-off is primarily an internal accounting treatment.
- It does not, by itself, release the borrower from the debt.
- Any genuine release of an obligation would be confirmed in writing.
What to do if you are struggling
If your company is finding repayments difficult, the right step is to contact us early rather than hoping a debt will be written off. There may be arrangements that help, and acting early gives the most options.
Credicorp lends only to UK limited companies and LLPs for business purposes and is an exempt business lender, so the Financial Ombudsman Service and FSCS do not apply. Anything affecting whether your company still owes a balance would be set out clearly by our team in writing.
See also: What is an exempt business lender?, What is security on a loan?, What does unsecured mean?.