There was nothing to pay for the first 12 months as interest costs were paid for by the Government via a Business Interruption Payment. After the first year, you’re responsible for making monthly repayments to repay the amount you borrowed, plus interest.
Repaying your Bounce Back Loan
Existing customers can use our calculator to see how Pay As You Grow changes your loan. To see this, and request a Pay As You Grow option, please click the button below. Please have your loan or BCA details handy.
If your Bounce Back Loan is in arrears, or you would prefer to talk to someone about Pay As You Grow, please call us on 0345 835 3858 and we’ll be happy to help. We’re here from 8am to 6pm Monday to Friday and 9am to 2pm Saturdays.
What is Pay As You Grow?
The Government announced Pay As You Grow for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.
Using these options won’t affect your credit score, but it may influence how we assess your creditworthiness in the future, and your loan may cost you more overall.
The Pay As You Grow options available are:
- Reduce your monthly repayments for six months by paying interest only. This option is available up to three times during the term of your Bounce Back Loan, OR
- Take a payment holiday for six months. This option is available once during the term of your Bounce Back Loan
- Request an extension of your loan term. You can choose to extend your loan from 6 to 10 years at the same interest rate of 2.5%. With this option, you’ll need to consider your ability to repay over the revised term of your Bounce Back Loan
Please note, with all three options, the total amount you owe will go up. This is because your interest costs increase as you’re repaying your loan over a longer period.
You can take option 3 at the same time as requesting options 1 or 2.
When can I choose an option?
If you have not exhausted your Pay As You Grow options, you can select a Pay As You Grow option at any time. If you make a Pay As You Grow request 1 working day before your next repayment, we cannot guarantee this will be processed for that payment and your Pay As You Grow change may not take effect until the following payment date. View PAYG & apply
If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month repayment holiday.
Or you can make a one-off repayment, as well as additional payments on a regular basis, which will save you money on interest payments.
Get in touch
Lines are open 24/7 and advisers are available 8am-6pm Monday to Friday and 9am-2pm Saturdays.
Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk.
Full details on BBLS and the list of participating BBLS lenders can be found on the BBB website at: british-business-bank.co.uk.
Pay As You Grow FAQs
PAYG stands for Pay As You Grow. The Government announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan. Pay As You Grow options can be taken through the life of your Bounce Back Loan, starting from the first anniversary of your loan.
·Using these options won’t affect your credit file score, or negatively affect your credit file. We may use requests for Pay As You Grow options to help us assess affordability in future lending applications. For example we will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan, and also your total debt exposure, which will include the outstanding Bounce Back Loan.
·Yes, you can change or withdraw your request before we have applied it. We can change the option after it has been applied, however this can result in the option no longer being available. Please call us on 0345 835 3858 and we will be happy to help and discuss what PAYG options remain available to you after any change. We’re here from 8am to 6pm Monday to Friday and 9am to 2pm Saturdays.
·You can request PAYG if you have missed payments, up to the point we issue a Formal Demand for repayment. Please call us for any support you might need, before you apply for a PAYG option.
·You can take a new option up to 3 months before your repayments are due to begin or increase.
Reminder of your Bounce Back Loan terms and conditions
When you applied for your Bounce Back Loan, you declared that you understood that: You are fully liable for all repayments, and if you are unable to meet these obligations, this could negatively affect your credit score. The 100% government guarantee is provided to cover any losses the lender makes and does not cover any losses that you might suffer if you are unable to meet your payment obligations. We would not carry out any affordability checks on your application.
