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How a payment holiday works
A payment holiday pauses repayments for an agreed short period. Interest generally keeps accruing, so the debt does not shrink during the break and the total repayable rises. It is breathing space, not free money.
When it makes sense
It suits a genuine, temporary cash-flow dip — a seasonal trough or a one-off shock — where a short pause lets you recover. For a recurring problem, look at the working-capital cycle instead. Ask your lender early.
What it means for you
Use it deliberately, for a real and temporary need. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Does interest stop during a payment holiday?
Usually not. Interest generally continues to accrue, so a payment holiday defers cost rather than removing it. The total repayable typically rises as a result.
Will a payment holiday affect my credit?
An agreed holiday arranged with the lender is different from missed payments, but check how it is reported. Always agree it formally rather than simply stopping payments.
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How do I manage a seasonal cash-flow dip?
Plan for the trough while you are still in the peak — forecast the dip, save a buffer in the busy months, and…
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Will a payment holiday cost me more overall?
Usually yes — a payment holiday pauses collections but interest normally keeps accruing, so the paused amount…
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.