It is tempting to present the best possible face to a lender, or to stay quiet until you have to speak. In difficulty, early honesty is the strategy that actually works.
Honesty earns flexibility
A lender who trusts your account of the position will work with you. One who later discovers the picture was rosier than reality will not. Candour, even about bad news, is what unlocks flexibility.
Early gives more room
Bad news shared early leaves time for gentle solutions — an extension, a small reduction. The same news shared late forces harder, costlier measures. Time is the resource honesty preserves.
It protects the relationship
Lending relationships are long. A difficulty handled with honesty leaves the relationship intact and the door open for future borrowing; one handled with spin or silence does lasting damage.
With us, early and honest contact is exactly what opens every option.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Why talking to us early gives you more options, How to approach your bank when trading is tough, Keeping lenders and creditors updated during a recovery.