What is a Debt Management Plan and how does it affect my loan?

A Debt Management Plan, or DMP, is an informal arrangement that lets an individual make a single reduced monthly payment to a debt-advice provider, who shares it across that person's creditors. It is a tool for personal debt.

Your loan is the company's, not yours personally

Your Credicorp loan is to the company, for a business purpose. A director's personal DMP covers the director's own debts (a personal card, a personal loan, a phone bill) — it does not cover, and is not affected by, the company's loan with us. The two are separate.

If you, the director, are personally struggling

If your own finances are under pressure, a DMP through a free provider may help with your personal debts. The largest free, regulated providers in the UK are StepChange, PayPlan, Citizens Advice and National Debtline — none charges a fee. That is a personal matter and you do not need to tell us about it.

If the company is struggling to pay us

If it is the company that is finding the repayments hard, please tell us early — that is what makes the difference. The quickest way is the Hardship Variation Request form on our Forms & Requests page. Once we know, we will:

• pause normal collection contact while we agree a way forward;
• look at a payment arrangement, a short freeze, or a restructure of the remaining term;
• never apply a charge that is not in your Business Loan Agreement.

For free, independent help with business money worries, Business Debtline (businessdebtline.org, 0800 197 6026) advises the self-employed and small businesses at no charge, and the Federation of Small Businesses offers member support. If the company's position is serious, a licensed insolvency practitioner can explain formal options such as a Company Voluntary Arrangement. You are welcome to contact us at any time to talk it through.