Rollover: what it is and our limit

A rollover is what happens when, instead of repaying a loan at the end of its term, the borrowing is extended into a new period. It can sound like breathing room, and occasionally it is — but it also adds cost, and leaning on it repeatedly is a warning sign rather than a solution. We allow rollovers only within a cap, and we would much rather help you find a sustainable path than let a short-term loan quietly become a long-term burden. This article explains what a rollover is, why we limit it, and what to do instead if you are struggling.

What a rollover actually is

Our loans are short by design — 14 to 84 days. A rollover means the loan is not cleared on schedule and is instead carried forward into a further term. The principal keeps working, and because borrowing continues, more interest accrues over the extended period. In other words, rolling over does not make the debt cheaper or smaller; it keeps you borrowing for longer and therefore paying more in total. That can be a reasonable, deliberate choice in a one-off cash-flow pinch — but only with eyes open to the extra cost.

Why we cap rollovers

We deliberately limit how many times a loan can be rolled over. We do this because a short-term product that rolls again and again stops being short-term: the costs stack up, and the borrower can end up paying far more than the original advance while never actually reducing what they owe. Capping rollovers is a guard rail. It protects your company from drifting into a cycle of extensions, and it forces a more honest conversation at the point where rolling over again would do more harm than good. We are not trying to trap you in repeat borrowing — quite the opposite.

If you are struggling, use hardship instead

Here is the most important message in this article. If you are thinking about a rollover because the company genuinely cannot make the repayment, a rollover is usually the wrong answer. Extending the loan adds cost on top of a problem you are already finding hard — it can make next month worse. The right route is to tell us early and use our support process.

We have a proper framework for this. Read our hardship and forbearance process to see how we can help — which may include adjusting your arrangements in a way that actually eases the pressure rather than compounding it. And if a payment is coming up that you know you cannot meet, do not wait for it to fail: what to do if you can't make a payment walks you through the immediate steps. Contacting us early almost always leads to better options than a rollover does.

Free, independent help

You do not have to work it out alone, and you do not have to rely only on us. Free, independent debt advice for businesses is available from:

• Business Debtline — businessdebtline.org, 0800 197 6026.
• The FSB — fsb.org.uk.
• HMRC Time to Pay for tax arrears — gov.uk.
• A licensed insolvency practitioner — r3.org.uk.

To sum up: a rollover extends a loan and adds cost, we cap how often it can be used on purpose, and it is not a substitute for dealing with real difficulty. If you can comfortably repay, repay — ideally early. If you cannot, talk to us about hardship support rather than rolling over. That is the route that actually helps.