The government has 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 will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first drawn down.
Using your PAYG options won’t affect your credit score, or negatively affect your credit file. We may use your requests for Pay As You Grow options to help us assess affordability in any future lending applications, for example we will look at your incomings and outgoings, including the future repayments on your Bounce Back Loan, and also the total amount of all your borrowings, which will include the amount of your Bounce Back Loan.
Any missed repayments and continued arrears will also impact your credit score.