Funding Circle Payment Holiday – Update

Coronavirus, Finance,

We confirmed last week that Funding Circle’s stance on payment holidays was being driven by it’s contracts. These forced the lender to inform the Credit Reference Agencies of any missed payments. This would adversely affect the credit rating of any business who took the payment holiday, and appeared unnecessarily draconian, given the ease with which other lenders were offering such holidays.

Today I’m pleased to announce that this stance has been changed, as shown on Funding Circle’s website.

The announcement, dated 7th April 2020, states:

‘We’re also pleased to let you know that the Credit Reference Agencies have today announced that businesses on payment plans due to COVID-19 should not have their credit score negatively affected. We hope this provides impacted businesses with some relief at this difficult time.’

If you have an existing loan from Funding Circle we would strongly suggest that you call them on 0203 966 1186 to discuss your situation. Do let us know how you get on!

If you have any questions around improving your cash flow, or preserving the cash that you have to make the best use of it during this time, please get in touch. If you are a client, remember that you have access to our 90 day cash flow modelling software, Fluidly Lite, that will help you forecast and see where the pressure points will fall. If you haven’t yet set up your access, let us know and we’ll send you a fresh invitation.

 

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