It is fair to want to understand what could happen if a company's arrears are left unresolved. We believe in being straight about this. Recovery is always a last resort, and almost every case is settled long before it gets there through dialogue.
The general path
If a company falls behind and no arrangement can be reached, the account moves through stages of contact and reminders. Where these do not lead to a resolution, the matter can move into formal recovery of the amount owed by the company under the agreement.
What this can involve
- Formal demands for the outstanding balance from the company.
- Use of a recovery partner acting on our behalf.
- Where necessary, legal steps to recover the debt from the company.
What it does not involve
Because we do not take personal guarantees, recovery is directed at the company, not at the directors personally. This is business lending outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply, and our agreement governs the process.
How to stay out of it
Recovery is avoidable. Respond when we contact you, agree a realistic plan, and keep us informed if things change. Whether your borrowing is Credicorp Flex or Credicorp Slice, engagement is what keeps an account on the support path rather than the recovery path.
See also: What happens if my company pays late?, What does 'arrears' mean and will it affect my credit file? and What happens when your company falls into arrears.