If a Direct Debit collection is returned unpaid by your bank — typically because of insufficient funds or a closed account — we will notify you by email and secure message on the same business day. The missed amount does not disappear; it remains due and interest continues to accrue on the outstanding balance.
What we do next
- Day 1: Failed collection notification sent to your registered email and portal inbox.
- Day 3: A second automated collection attempt is made via BACS if your mandate is still active (one retry is permitted under BACS rules).
- Day 5: If the retry also fails, a servicing adviser will contact you to arrange manual payment by faster payment or CHAPS.
- Day 10: If no payment or payment plan is agreed, the account is formally noted as in arrears and a default notice process may begin.
How to resolve it quickly
The fastest resolution is a same-day bank transfer for the overdue instalment. Our sort code, account number, and your unique payment reference are shown in the portal under Make a payment. Once received, we will clear the arrears flag within one business day. If you are temporarily short of funds, contact our servicing team early — payment plans are available and early contact always produces better outcomes than waiting.
What a failed payment does not do
A single missed payment does not automatically trigger early repayment demands or default interest on the whole balance. We follow a structured arrears process and communicate at each step before escalating. Repeated failures or a failure to engage may change that position (illustrative — specific terms are in your facility agreement).
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How do I set up the Direct Debit for my loan?, Can I overpay to clear my loan faster?.