# What happens if you miss a payment — our forbearance process explained

*Source: https://credicorp.co.uk/what-happens-if-you-miss-a-payment/*

Even a well-run business has months where money is tight. If a Credicorp Direct Debit does not go through, we have a defined process — and a forbearance team behind it. The single most important thing to do is tell us early. The worst thing to do is nothing.

## Day 0 — the failed collection

You get an email within the same day: “Your Direct Debit didn’t go through — is everything OK?” The tone is deliberately not punitive. We try the collection again on a defined retry date a few working days later. The amount is added to your overdue balance; interest continues to accrue at the contractual daily rate; *no default uplift* is applied.

## Day +3 — first reminder

If the retry has not cured the position, we send a gentle reminder. Still informal. Asks whether something we should know about is going on. Points you at “Get help with payments” in the portal — which is the front door to the forbearance team.

## Day +14 — formal demand

If we have heard nothing and the position is still uncured, we send a formal demand letter. This is the first communication that quotes the agreement clause being relied on and gives a 14-day window to pay or to enter a forbearance arrangement. You can still talk to us — we will not escalate while a genuine arrangement is being negotiated.

## Day +28 — final demand

Last warning before formal default. Same 14-day pay-or-arrange window. This is the last opportunity to resolve informally.

## Day +42 — notice of default

If nothing has changed, we register a default with the business credit reference agencies (Experian Business, Creditsafe, Equifax Business). This affects the company’s ability to obtain commercial credit for up to 6 years. The agreement becomes subject to immediate demand.

## Forbearance — your way out

At any point in the above timeline, you can ask for forbearance. We have three standard forms:

- **Reduced payment** — pay a smaller amount each cycle for an agreed window.

- **Payment holiday** — pause Direct Debit collections for a defined period while interest continues to accrue on the outstanding balance.

- **Term extension** — extend the repayment period so each scheduled payment is smaller.

While a forbearance arrangement is in place we do not register missed-payment markers for any payment made under the arrangement on time, and we do not pursue formal collections. The 100% per-agreement cost cap continues to apply.

## Free independent help

If you would like to talk to someone who is not us, free, independent advice on business debt is available from [Business Debtline](https://businessdebtline.org) (0800 197 6026), [FSB](https://www.fsb.org.uk) and [Citizens Advice](https://citizensadvice.org.uk).

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