Glossary

What is an IVA and does it apply to companies?

An Individual Voluntary Arrangement (IVA) is a formal, legally binding agreement between an individual and their creditors to repay some or all of what is owed over an agreed period. It is a personal insolvency tool, not a company one.

The company equivalent

For companies, the comparable arrangement is a Company Voluntary Arrangement, or CVA. A CVA lets a company agree a structured repayment plan with its creditors while continuing to trade.

Why the distinction matters

Because Credicorp lends only to limited companies and LLPs for business purposes, an IVA relates to an individuals personal finances rather than to a company facility with us.

  • An IVA is personal; a CVA is for companies.
  • Both are formal arrangements with creditors.
  • Both are significant steps usually taken with professional advice.

If your company is facing financial difficulty, speak to a licensed insolvency practitioner, and talk to us early so we can understand the situation.

See also: What is a CVA (Company Voluntary Arrangement)?, Can a company in a CVA or with a repayment plan apply? and Affordability before you apply: weighing it up yourself.

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