If you are a Bounce Back Loan borrower, you can request more time and flexibility to pay back the loan.
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.
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 drawn down.
Using your PAYG options won’t affect your credit score, or negatively affect your credit file. We may use your requests for Pay As You Grow options to help us assess affordability in any future lending applications, for example we will look at your incomings and outgoings, including the future repayments on your Bounce Back Loan, and also the total amount of all your borrowings, which will include the amount of your Bounce Back Loan.
Any missed repayments and continued arrears will also impact your credit score.
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.
You can request Pay As You Grow options from 60 days before your first repayment due date. We’ll be in touch with more details, you don’t need to take any action until then.
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.
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.
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.
Visit our Frequently Asked Questions to find further guidance and support
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.
For help with your Business Banking queries, you can now chat with us securely on WhatsApp.
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.
