If you find yourself in financial difficulties, our specialist teams can work with you to find solutions that can support you through any period of uncertainty.
Cost of living
If your business is affected by the rising cost of living, we have some help available depending on your circumstances, including:
- Business Overdrafts (subject to status) 13.31% EAR1 representative based on assumed amount of £8,000 over 12 months. An arrangement fee, in this example £175, is taken when the overdraft is agreed: an overdraft, or an increase to an existing overdraft limit, could help you manage your cashflow in the short term.5
- We can help you manage your overdraft with planned limit reductions (subject to agreement).
- Business Loans (subject to status) 9.9% APR2 representative (fixed). Based on an assumed loan amount of £13,000 over 60 months at the AIR3 of 9.06% p.a (fixed). Arrangement Fee £250. Monthly repayment £273.12. Total amount payable £16,387.38.
- We have a range of supporting features, including repayment holidays for new loans (security may be required). When taking a repayment holiday, you’ll pay more interest over the length of your term.
If your business is in financial difficulty, we can offer additional support, please call us today to talk about your options.
Struggling with debt
Bounce Back Loan (BBL)
- If you are struggling to make your BBL monthly payments, you should first look at your Pay As You Grow options.
- If you miss a repayment on your Bounce Back Loan, we’ll let you know the amount you missed, how to remedy it, and when you need to make your next payment by. We’ll also let you know how it could affect your future repayments
- If you default on your BBL, we’ll tell you about any action we might take before we take it
- We’ll provide you with options for help and assistance, including sources of free independent advice.
We will also:
- Monitor the repayments you make during the life of your BBL and offer help if it looks like you may have difficulty repaying.
- If we believe you’re vulnerable, we may make adjustments to ensure that your circumstances are accommodated throughout the duration of your BBL.
- Give you time to repay any missed payments on your BLL. We won’t treat a BBL default as a default, if you make the repayments within the timeframe we give you.
- Not charge any fees in relation to your BBL, including on default charges or interest. If you loan isn’t repaid when it’s due, we’ll charge interest at 2.5% per until your loan is fully repaid.
- If you miss your BBL repayments, TSB may repay any outstanding debt from your other accounts with us. Defaulting on your loan could negatively affect your credit score and make it more difficult for you to borrow in the future.
Are your business loan or overdraft payments getting too much?
If you have a business loan and/or overdraft and the monthly payments are getting too much we may be able to help with forbearance†. Forbearance may be granted as part of your agreement with us. Examples of the forbearance that we may be able to provide are shown in the table below. Please contact us straight away to discuss if these examples or other temporary financial measures may help make the short-term borrowing payments more affordable.
| Support needed | Business Loan | Business Overdraft | Business Loans and/or Overdrafts |
|---|---|---|---|
| Short-term deferred payments | Payment holiday, Payment freeze | Pause overdraft charges | Temporary limit increase, Refinance with a business loan5 and a capital repayment holiday at the start (security may be required)4 |
| Long-term payment reduction | Term extension, Payment plan | Refinance with a business loan5 | Refinance with a business loan5 |
† All forbearance is granted subject to approval. The forbearance will be reported to the credit reference agencies as an arrangement. This may impact your credit score and influence how we assess your creditworthiness in the future.
All deferred payments and/or term extensions will mean that you pay more interest overall.
Breathing Space Scheme
Breathing Space, officially called the Debt Respite Scheme, is a government scheme which could help relieve some of the pressure and stress caused by being in debt.
You could get up to 60 days’ respite from interest, fees and court action to give you time to deal with your debt. Visit Breathing Space. Debt Respite Scheme Advice. StepChange for more information.
Get debt advice
Independent Money Advice Organisations
These organisations offer free, independent money advice:
Debt Action NI | Minding Your Head
Insolvency Support
If you think your business is, or is about to become, insolvent, you should seek independent professional help.
Government advice about insolvency
Companies House gives a basic overview of insolvency proceedings, and summarises some of the rules that apply to the process.
The Insolvency Service is a government agency that could also offer support to your company if you're dealing with liquidation and insolvency.
Get in touch
Lines are open 24/7 and advisers are available 8am-6pm Monday to Friday and 9am-2pm Saturdays.
1 EAR means the Equivalent Annual Rate, it includes the Bank of England Base Rate and assumes that interest is compounded monthly. It does not take into account any other charges for example unauthorised borrowing fees. For further information please see ‘Business Banking Charges Guide’ within Business Accounts
2 Annual Percentage Rate (APR) is the total cost of the credit expressed as an annual percentage. It represents the actual yearly cost of credit over the loan term and includes the rate of interest and a £250 arrangement fee for a £13,000 loan. The APR will vary depending on the loan amount and term. Annual Percentage Rate Representative (APR Representative) is the advertised rate (or a lower rate) we reasonably expect at least 51% of people who are accepted for and enter into the loan agreement as a result of the advertising or marketing will pay.
3 Annual Interest Rate (AIR) is the rate of interest on a loan with the rate compounded on a monthly basis.
4 Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All new lending is subject to a satisfactory credit assessment, and we will need your permission to carry out a credit check on you and your business. You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
5 A 1.5% arrangement fee will apply based on the amount you choose to borrow. These terms will be discussed with you before you take out the loan. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%.
