Home / Debt & Credit
Security Deposits
LiveReplaces Advance Payments for new customers. Upfront, held separately, returned to good payers.
We offer affordable contracts for all small businesses regardless of credit score. Deposits cover the risk so we can do this.
How It Works
- Must pay deposit before coming on supply
- Amount varies by credit score (CreditSafe soft check, does not affect customer's credit file)
- Held in the Business Security Deposit ledger, not applied to bills
- Returned to good payers during contract (sliding scale, see below)
- Remaining balance returned on leaving once any debt is cleared
- Only required for first fixed agreement, renewals do not need a second deposit
- Separate deposit required for each new account, even within a portfolio
Credit Score, Deposit Tiers
| Credit Score | Deposit |
|---|---|
| 80+ | No deposit |
| 50 to 79 | 1 month's estimated charges |
| Charity (any score) | 1 month's estimated charges |
| <50 or no credit score (e.g. sole traders, partnerships) | 3 months' estimated charges |
Return Schedule
Kraken checks each quarter of the tariff term. If the customer has an active DD and no aged debt over 30 days, 25% of the deposit is returned to the main ledger.
| Tariff complete | Deposit returned |
|---|---|
| 25% | 25% |
| 50% | 50% |
| 75% | 75% |
| 100% | Remainder (after any debt cleared) |
Checks continue until full deposit returned, even after the initial agreement ends. Returned credit can be refunded to the customer's bank on request.
Payment Timing
Switch within 21 days: Card payment required during sign-up (Stripe).
Switch over 21 days away: Taken via Direct Debit straight into the deposit ledger.
Kraken checks the day before supply start date. If deposit ledger not fulfilled, switch is rejected.
FAQ
What was this called before?
Advanced Payments. Same concept, new name and ledger structure.
Does the deposit go towards energy bills?
No. It sits in a separate ledger and is not used for energy charges.
Does the credit check affect the customer?
No. CreditSafe soft check only, does not appear on their credit file.
24-month tariff, still max 3 months deposit?
Yes. Max is always 3 months regardless of tariff length.
HH meters?
Same rules, handled manually for now.
Customer wants to switch away before full deposit returned?
Return any remaining deposit value once they've paid off any debt on the account.
Internal use only. Do not name Kraken or internal tools to customers.
Updated 16 Sep 2026