Contact the lender as soon as you know there is a problem, and let us know too. A missed payment usually triggers a charge and is reported to credit reference agencies, which can affect your ability to borrow later. Because asset finance is secured on the asset, continued non-payment can ultimately lead to the asset being repossessed. Early contact almost always gives you more options.
Lenders would generally rather find a workable arrangement than repossess. Depending on the lender and your circumstances, options can include a short payment holiday, a rescheduled term, or a temporary reduction. None of this is automatic and none of it is guaranteed — it is at the lender’s discretion and will normally cost more overall, because interest continues to accrue.
If a director has given a personal guarantee, that guarantee can be called upon if the business cannot pay, which puts personal assets at risk. Check whether you have given one before assuming the exposure is limited to the company.
If money is tight more generally, free and impartial debt advice is available. MoneyHelper, Business Debtline and Citizens Advice all offer free help, and Business Debtline is specifically for people with business debts. You should never have to pay for debt advice.
Talk to your lender early. Missing payments can damage your credit file and put the financed asset, and any personally guaranteed amount, at risk.