2 min read
Definition
A capital repayment holiday temporarily suspends the capital portion of your repayments, typically while interest continues to accrue and be paid. It differs subtly from a full payment holiday, where nothing is paid and interest is added to the balance. It buys time but lengthens the term or raises later instalments.
In plain terms
It is a relief valve for a rough patch. The debt still costs you — you have just deferred paying it down.
Why it matters for your company
Ask early if cash is tight; a planned holiday is far better than a missed payment. See interest-only period and how to manage repayments when rates rise.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.