You can ask for a capital repayment holiday of three or six months at the start of your loan. You request it when you apply, and it's subject to assessment.
What a capital repayment holiday means
For the first three or six months, you don't repay any of the amount you borrowed. Interest still applies, so the loan costs a little more overall. Your monthly repayments after the holiday also need to cover the full amount over the rest of your term.
Who it suits
Businesses that need time before money starts coming in, for example while fitting out premises, building stock or winning first customers.
How to ask
Tell your advisor while your application is being prepared. Your plan and forecast should show why you need it and how you'll repay once it ends. The holiday is part of what's assessed.
Already repaying and struggling?
The holiday is arranged at the start of your loan. If you're already repaying and can't make a payment, contact our finance partner before it's due. See What if I can't make a repayment?.
More on repayments
See How do repayments work, and who do I pay?.
Last reviewed: 8 October 2026