Missing a loan payment is stressful, but dealing with it quickly is always the right move. This guide explains what happens when a payment is missed, what you should do, and where to get free support.
What happens when a payment fails?
If a direct debit collection is not honoured by your bank on the due date, the following typically happens:
- We receive a notification from the payment processor that the collection failed
- We send you an email and (if applicable) an SMS alert on the same day
- A missed-payment charge is applied to your account as set out in your Business Loan Agreement
- Your account status is updated to reflect the arrears
We do not report to personal credit reference agencies because your loan is to your company, not to you personally. However, business credit data on your company may be updated to reflect missed payments, which can affect your company's credit profile with other lenders.
What you should do immediately
- Check your bank balance — confirm whether the issue was insufficient funds, a bank error, or a direct debit mandate problem
- Contact us the same day — reach our team as early as possible. The sooner we hear from you, the more options we have to help
- Make a payment if you can — if funds are available, you can make a manual payment to bring your account up to date. Sign in to see your current balance and payment details
- Do not wait to see if it resolves itself — it will not. Arrears compound quickly on short-term loans
What if you genuinely cannot pay right now?
If your company is experiencing genuine financial difficulty — not just a timing issue — the most important thing is still to tell us. We can discuss options including:
- A revised repayment arrangement based on your current cash flow
- A short-term payment deferral in exceptional circumstances
- A reduced payment plan while you stabilise
We take a pragmatic approach to companies in temporary difficulty. We would rather agree a workable plan with you than pursue the full outstanding balance through other means. Our Payment difficulty section covers all of these options in detail. To understand what happens to your credit file, see what arrears means and whether it affects your credit file.
Free independent advice
You do not have to deal with this alone. Free, confidential advice for businesses experiencing financial difficulty is available from:
- Business Debtline — free specialist advice for UK small businesses, 0800 197 6026 (Mon–Fri 9am–8pm)
- MoneyHelper — government-backed guidance for both individuals and businesses
- Citizens Advice — general financial and legal guidance
Using one of these services is free and does not affect your position with us. Getting expert advice is always a sensible step.
Will a payment arrangement affect future borrowing?
A formal payment arrangement on your current loan will be noted on your account. This may affect whether Credicorp can lend to your company again in the future, and it may affect business credit data held by third-party agencies. However, reaching an agreed arrangement is always better than unresolved arrears — it shows you engaged with the problem and resolved it responsibly.
Contact us
If a payment has failed or you know an upcoming payment may be at risk, please contact our team right away. Early contact always leads to better outcomes for your company.
See also: How to download your loan documents, How to get a business loan: a step-by-step guide, How to raise a complaint with Credicorp.