Pay As You Grow (PAYG)

Repaying your Bounce Back Loan

You received a payment holiday for the first year of your loan, with the interest being paid for by the Government via a Business Interruption Payment. After the first 12 months, you will need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends.

We will send your repayment details outlining your options, around three months before your first payment is due.

Please note you do not 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, and doing so will also help save you money on your interest payments.

Your other repayment options

Pay As You Grow

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 approved.

Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall.

The options available to you when you are due to make your first payment after 12 months are as follows:

  1. 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.
  2. 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.

Please note for all three options that 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 options 1 and 2 together if you need to.

 

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, please call 0345 8353858.

Other business finance support options

In addition, the British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

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.

FAQs

PAYG stands for Pay As You Grow. 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 can be taken through the life of your Bounce Back Loan, starting from the first anniversary of your loan.

We are working on getting this up and running, please check back here. We’ll also be in touch with details on how to request PAYG options.

Yes, the interest will kick in from the first anniversary of your loan opening.

Using these options won’t affect your credit score though it may influence how we assess your credit worthiness in the future and your loan may cost you more overall.

Contact us 

To use our online chat service click on the blue tab on the right hand side of this page. Our automated service is available 24/7 with Partners 9am- 4.30pm Monday to Friday (excluding bank holidays).

British Business Bank logo

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.

Register for mobile banking

We're open anytime and anywhere. Take care of your day-to-day banking when you need to.

Set up mobile banking

Issues
logging in?

Follow our step-by-step tutorial to get back online from the safety of your home.
 

View tutorial

Need to visit us?
Visit our FAQs

If you need help with something specific, let us know what it relates to or search a topic.
 

Go to help page