Credicorp

Payment holiday

A payment holiday is a temporary arrangement in which a lender agrees to pause or reduce a borrower's repayments for a defined period, to help the borrower through a difficult patch. It is a form of forbearance. A payment holiday does not cancel the debt: the borrowing is still owed, and interest may continue to accrue, so the arrangement is about timing rather than write-off.

What it does: Pauses or reduces repayments for an agreed period.
What it is not: A cancellation of the debt — the money is still owed.
When it helps: A temporary difficulty where a short break allows recovery.

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How a payment holiday works

A payment holiday is agreed in advance, for a set period, on terms that reflect what the borrower can realistically manage. Depending on the arrangement, interest may continue to build during the break, and the paused amounts are caught up afterwards — by extending the term or adding to later payments. The point is to give the borrower room to recover without falling into arrears or default.

/legal/vulnerability/ How Credicorp, a UK business lender, supports customers going through a difficult time — vulnerability policy and support routes. Forbearance Forbearance is the temporary arrangements a lender offers a borrower in financial difficulty — such as reduced or paused payments — to help them recover… Arrears Arrears are payments that a borrower has missed and not yet made up — money that is overdue under a credit agreement but has not yet reached the threshold… Default A default is a breach of a credit agreement — most often missed payments — that a lender formally records once the breach reaches a defined threshold… Vulnerable customer A vulnerable customer is someone whose circumstances make them less able to manage a financial relationship or more at risk of harm. Good lenders identify… Total cost cap A total cost cap is a ceiling on the combined interest and fees a borrower can be charged on a facility, expressed as a proportion of the amount borrowed.… Sole trader A sole trader runs a business as an individual, with no separation between the person and the business in law. Sole traders are not eligible to borrow… POCA (Proceeds of Crime Act 2002) The Proceeds of Crime Act 2002 is the UK law that creates the Suspicious Activity Report regime: lenders must report transactions they suspect involve the… PEP (politically exposed person) A politically exposed person (PEP) holds a prominent public function — such as a senior politician, judge or central-bank official — and is screened more… Secured loan A secured loan is backed by an asset the lender can recover against if the loan is not repaid. It contrasts with unsecured lending, where no asset is… Debenture A debenture is a document that grants a lender security over a company's assets, registered at Companies House. It lets the lender recover against those…

Payment holiday and forbearance

A payment holiday is one of several forbearance measures, alongside reduced payments, interest-only periods, term extensions and structured catch-up plans. Which is appropriate depends on the situation. The common thread is that the lender adjusts the terms temporarily to support recovery, rather than moving straight to recovery action.

Payment holidays and Credicorp

If a business borrowing from Credicorp hits a difficult period, the right step is to talk to us early so we can consider the options — which may include a payment holiday or another forbearance arrangement. Contact us at /help/; support for vulnerable customers is at /legal/vulnerability/. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

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