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Pay As You Grow (PAYG)

If you had a payment holiday for the first year of your loan, and the interest was paid with a Business Interruption Payment, you’ll need to repay the amount you borrowed, plus interest, from the date your repayment holiday ended.

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.

View PAYG & apply

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:

  1. 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
  2. Take a payment holiday for six months. This option is available once during the term of your Bounce Back Loan
  3. Request an extension of your loan term. You can choose to extend your loan for 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 use the options together if you need to.

When can I choose an option?

We’ll send your repayment details outlining your options 3 months before your first payment is due, you don’t need to contact us in advance.

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.

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. Visit

Full details on BBLS and the list of participating BBLS lenders can be found on the BBB website at:

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.