If a scheduled repayment is not received by the due date, a late-payment fee is applied and interest continues to accrue on the full outstanding balance, including the missed instalment. The fee amount is stated in your loan agreement. Prompt contact with your account manager is the most effective way to limit the overall cost of a missed payment.
How quickly is the late-payment fee applied?
Late-payment fees are typically applied on the first business day after the missed due date once the payment has been confirmed as not received. You will receive a notification through the portal and by email. Illustrative, not a quote: a £45 late-payment fee on a £20,000 outstanding balance adds a small but immediate charge, and ongoing daily interest at your agreed rate continues until the missed amount is cleared.
What happens if the missed payment is not resolved quickly?
If the arrears are not addressed within a short period (typically outlined in your agreement), your account may be placed in arrears management and further charges may become payable as set out in your agreement. Continued non-payment can also affect your company's ability to access further finance from Credicorp or other lenders. Your account manager will contact you to discuss a resolution, including whether a short-term payment arrangement is appropriate.
What should I do if I know a payment will be missed in advance?
Contact your account manager before the due date. In some circumstances it is possible to defer a payment or agree a revised schedule before the default event occurs, which avoids the late-payment fee and preserves your repayment record. Acting early gives the most options — contacting us after the event limits what can be done.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Are there fees for changing a payment date on a business loan?, Are there fees to settle my business loan in full?.