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.

 

Find out more and apply

Our handy calculator shows how Pay As You Grow would change your loan. To see this, and request a Pay As You Grow option, please click the button below. You will need to have your loan or BCA details handy.

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.

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.

 

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.

You can request PAYG up to three months before your payments begin. We'll be in touch to let you know when you can apply.

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

Yes, you may do so at any time. You will pay no interest at all if you do so before the first anniversary of your loan.

Using these options won’t affect your credit score, or negatively affect your credit file. We may use requests for Pay As You Grow options to help us assess affordability in future lending applications. For example we will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan, and also your total debt exposure, which will include the outstanding Bounce Back Loan.

You can request PAYG if you have missed payments, up to the point we issue a Formal Demand for repayment. Please call us for any support you might need, before you apply for a PAYG option.

Yes, you can change or withdraw your request before we have applied it. We can change the option after it has been applied, however this can result in the option no longer being available. Please call us on 0345 835 3858 and we will be happy to help and discuss what PAYG options remain available to you after any change. We’re here from 8am to 6pm Monday to Friday and 9am to 2pm Saturdays.

You can take a new option up to 3 months before your repayments are due to begin or increase.

You can only select one 6 month interest only choice at a time. If you are already in a 6 month holiday or interest only, you can make a new PAYG request up to 3 months before your regular repayments are due to begin.

You will need the post code of the address where we send your loan documentation.

Interest is charged from the end of your Business Interruption Payment (BIP). If your first full payment is due more than a month after your BIP ends, you need to pay the interest that builds up between your BIP end date and the first repayment date.

If you have less than 3 months to go before your monthly repayments begin or increase, 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.

It's important we understand your circumstances to best help you, so 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.

It's important we understand your circumstances to best help you, so 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.

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