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What happens if you miss a payment — our forbearance process explained

A clear walk-through of what happens in the days after a missed payment, how to ask for breathing space, and why the worst thing to do is nothing.

Even a well-run business has months where money is tight. If a Credicorp Direct Debit does not go through, we have a defined process, and a forbearance team behind it. The single most important thing to do is tell us early. The worst thing to do is nothing.

Day +3 — first reminder

If the retry has not cured the position, we send a gentle reminder. Still informal. Asks whether something we should know about is going on. Points you at "Get help with payments" in the portal, which is the front door to the forbearance team.

Day +14 — formal demand

If we have heard nothing and the position is still uncured, we send a formal demand letter. This is the first communication that quotes the agreement clause being relied on and gives a 14-day window to pay or to enter a forbearance arrangement. You can still talk to us: we will not escalate while a genuine arrangement is being negotiated.

Day +28 — final demand

Last warning before formal default. Same 14-day pay-or-arrange window. This is the last opportunity to resolve informally.

Day +42 — notice of default

If nothing has changed, we register a default with the business credit reference agencies (Experian Business, Creditsafe, Equifax Business). This affects the company's ability to obtain commercial credit for up to 6 years. The agreement becomes subject to immediate demand.

Forbearance — your way out

At any point in the above timeline, you can ask for forbearance. We have three standard forms:

While a forbearance arrangement is in place we do not register missed-payment markers for any payment made under the arrangement on time, and we do not pursue formal collections. The 100% per-agreement cost cap continues to apply.

  • Reduced payment — pay a smaller amount each cycle for an agreed window.
  • Payment holiday — pause Direct Debit collections for a defined period while interest continues to accrue on the outstanding balance.
  • Term extension — extend the repayment period so each scheduled payment is smaller.

Free independent help

If you would like to talk to someone who is not us, free, independent advice on business debt is available from Business Debtline (0800 197 6026), FSB and Citizens Advice.

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