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Missed a repayment?
Here is what happens next.
A missed payment does not have to become a crisis. The process is predictable, the personal liability picture is clear — directors are not personally on the hook — and contacting the lender early is almost always the right move.
This guide is not for the majority of borrowers — most Credicorp customers repay on time and the process works exactly as planned. But if your company is coming up against a repayment date it might not meet, this page explains what happens, what the consequences are, and what to do. The operating lender for all customer enquiries is credicorp.co.uk.
One thing that does not change: the borrower is the company, not the director. There is no personal guarantee. A missed payment is a company issue, not a personal one.
What happens immediately after a missed payment
When a scheduled repayment is missed, the following happens automatically:
- Daily interest continues to accrue. Missing a payment does not pause the clock. The outstanding balance grows by 0.25% per day until it is cleared. The 100% cost cap still applies — total charges can never exceed the original principal — but the longer the position runs unresolved, the more expensive it becomes.
- The account moves into arrears. The lender's systems flag the account. For a revolving Flex facility, the company will not be able to make further draws until the arrears are addressed.
- The lender will make contact. Credicorp's collections process begins. The lender will attempt to contact the company to understand the position and discuss resolution.
None of this touches the director personally. The claim is against the company, not against any individual.
Personal liability — what it is and what it is not
Credicorp lends to incorporated bodies — limited companies and LLPs. There is no personal guarantee. No charge over a director's home. The director is not personally liable for the company's obligations under the loan.
This means: if the company cannot repay, the lender's claim is against the company, not against the director's personal assets, savings or home. The company's credit record is affected. The director's personal consumer credit file is not.
There is one exception to this general position — directors who behave fraudulently or allow a company to trade insolvently can face personal consequences under general company and insolvency law. This is a much broader legal issue that applies across all business dealings, not something specific to this loan. For the routine scenario of a company with a cash-flow problem, the director's personal position is protected. The full position is set out in no personal guarantee — what it means.
How it affects the company's credit record
Business credit reference agencies — Experian Business, Equifax Business, Creditsafe and others — record payment behaviour on business credit accounts. Missed payments, arrears and defaults are typically recorded against the company's profile and visible to other lenders who search the company's bureau record.
A default or County Court Judgement (CCJ) against the company is a significant negative on the company's credit record. CCJs are publicly registered and visible to any lender, supplier or prospective business partner who runs a credit check on the company.
Resolving the arrears does not remove the record, but it does stop the damage accumulating. And a clear record from that point forward gradually rebuilds the picture over time. For more on what business credit bureaux see and record, read what business credit bureaux see.
What to do if your company is struggling to repay
The single most important step is the first one. Everything else follows from it.
- Contact the lender before the payment date, not after. Go to credicorp.co.uk as soon as you know — or suspect — a repayment is at risk. Lenders have far more flexibility to help when they hear early. Contacting after the fact, or not at all, closes down options.
- Know the company's exact cash position before you call. Current balance, expected inflows, fixed outgoings due in the next 14 to 28 days. Pull the last 6 months of bank statements. A director who can describe the position precisely is far easier to help than one who cannot.
- Ask the lender what options are available. The collections or hardship team can often explore a payment arrangement, a short extension, or a partial repayment schedule. The options available depend on the company's circumstances and the lender's assessment, but engagement always produces better outcomes than silence.
- Resolve the position as fast as the company can. Daily interest accrues every day the balance is outstanding. Every day the company reduces or clears the balance saves the daily charge from that point. The 100% cap bounds the worst case, but the faster the company acts, the lower the final total.
Repayment difficulty questions
The questions directors ask most when a payment is under pressure.
Does a missed company loan repayment affect my personal credit score?
No. Credicorp lends to the company, not to the director, and there is no personal guarantee. A missed repayment on a company loan is recorded against the company's business credit bureau profile, not against the director's personal consumer credit file. The director's personal credit history is not searched when the company applies, and it is not affected by what happens after. The company carries the obligation.
What happens to interest if I miss a payment?
Daily interest continues to accrue on the outstanding balance. Missing a repayment does not pause the interest clock — the balance grows by the daily rate each day until it is cleared. The 100% cost cap still applies: the total charges can never exceed the original amount borrowed, even if the loan goes into arrears for an extended period. Resolving the position as quickly as possible is always in the company's interest because it reduces the total cost.
Can the lender take legal action if the company doesn't repay?
If a company defaults and does not engage, the lender has the same remedies available as any unsecured creditor — including a County Court Judgement (CCJ) against the company. A CCJ against the company will be recorded by credit bureaux and can affect the company's ability to obtain credit in the future. There is no personal guarantee securing the loan, so the lender's claim is against the company, not the director personally. Engaging early when repayment is at risk avoids this outcome in most cases.
What should I do if I think I am going to miss a repayment?
Contact the lender at credicorp.co.uk before the repayment date, not after. Lenders can often explore options — a payment arrangement, an extension, a revised schedule — with companies that engage proactively. A company that contacts the lender as soon as it identifies a problem is in a far better position than one that misses payments without communication. Early contact is not an admission of inability to pay — it is responsible borrower behaviour.
Will a missed payment appear on the company credit file?
Yes. Missed payments and arrears on business credit are typically recorded by business credit reference agencies — including Experian Business, Equifax Business and Creditsafe — where the lender reports to them. This can affect the company's credit score and its ability to borrow in the future. The exact reporting depends on the lender's arrangements with bureaux. Resolving arrears does not remove the record, but maintaining a good record going forward does gradually rebuild the picture over time.
Related guides
For the 100% cost cap and how it limits the worst-case total, read the 100% cost cap. For daily interest and how the cost builds day by day, read how daily interest works. For how early repayment reduces cost, read early repayment explained. For the credit bureau impact in detail, read what business credit bureaux see. For the no-personal-guarantee position in full, read no personal guarantee — what it means.
For any active issue with your account, the lender is at credicorp.co.uk/contact-us/.
If you are worried about a payment, talk to the lender first
Every account question, including difficulty with a repayment, is handled at credicorp.co.uk.