# Rollover: what it is and our limit

*Source: https://credicorp.co.uk/support/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](/support/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](/support/what-to-do-if-you-cant-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.

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Credicorp Limited — UK lender to limited companies (Company No. 16093826). credicorp.co.uk