If you are a Bounce Back Loan borrower, you can request more time and flexibility to pay back the loan.
Overlay
You can apply for multiple PAYG options, but we can only process one application at a time. Allow two business days after applying before submitting an additional request.
Learn more about Pay As You Grow options
The British Business Bank have produced this short video to explain what Pay As You Grow is and what options you can request under the scheme.
The options available to you when you are due to make your first payment after 12 months are as follows:
-
01
If you expect to be in a better position to repay in the future:
a) You could 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:
b) You could take a payment holiday for six months.
This option is available once during the term of your Bounce Back Loan.
-
02
If you’re only able to repay a smaller amount:
You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.
If you’re considering this option you should think carefully about your ability to repay over a longer timeframe, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan.
-
For all PAYG options, the total amount you owe will go up. This is because your interest costs increase as you’re paying your loan over a longer period and/or changing the course of your loan. You can use options 1 and 2 together if you need to. Options are subject to approval.
How Pay as you Grow could affect loan repayments
PAYG options may increase your repayments and the total amount you owe as interest costs increase if you repay your loan over a longer period.
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.
These are representative examples only and won’t accurately reflect your individual circumstances. You’ll soon be able to log in to see the details of your specific loan and apply for PAYG options. We’ll send you more details shortly. There’s no need to get in touch at present.
We’re here to help
You do not need to contact us in advance. We will send you a repayment schedule outlining your options, around three months before your first payment is due.
However if you’re worried about your finances, the quickest way to get in touch is via our webchat service, Cora. Using webchat, you can:
get help with an existing loan
talk to us about other support
If you are struggling with your finances, please see our website for support. You can also find a list of organisations who can give you impartial advice on this page.
We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts.
Message us anytime on WhatsApp
For help with your Business Banking queries, you can now chat with us securely on WhatsApp.
Working with British Business Bank
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.
Information Message