Missed a business loan payment? What happens and what to do

What happens first

Miss a scheduled payment and the lender will usually apply a default charge and attempt to collect again. At this early stage nothing is irreversible — a prompt payment often closes the matter with only the fee. The danger is inaction.

How it hits your credit

A missed payment left unresolved is reported to the credit reference agencies, denting your business credit score and appearing on your credit report. Persistent misses can lead to formal arrears and, ultimately, recovery action.

Call your lender early

The single most useful thing you can do is contact the lender before the situation worsens. A good lender would rather agree a short arrangement than pursue recovery. Explain the position honestly; solutions like a brief plan or an adjusted schedule are often available to those who ask.

Getting back on track

Once the immediate payment is caught up, look at why it happened. If the loan was too large for your cash flow, consider refinancing to a longer term, and rebuild headroom. See how to avoid defaulting.

Rebuild your headroom

Use the calculator to check the repayment genuinely fits, and adjust if it does not.

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