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Managing Bounce Bank Loan repayments

We may be able to help if you’re struggling to make your repayments.

If you have a Bounce Back Loan and are finding it harder to meet your repayments, we may be able to help you.

Support for your repayments: Pay As You Grow

As the cost of doing business continues to rise, you may be finding it harder to run your business finances and could be struggling to manage repayments. A period of reduced payments or a payment holiday could give you some room to breathe.

  • Pay As You Grow (PAYG) has three options available:
    • Reduce monthly repayments for 6 months by paying interest only – you can do this up to three times. It is important to note that you will end up paying more in the long run.
    • Payment holiday for 6 months – this is only available once and the total amount to repay will increase as more interest will be charged.
    • Extend the term of the loan to 10 years and the interest rate of 2.5% stays the same.

Remember to consider that all three options will mean more interest is paid, so it’s important to think about whether there is a chance of your business fully recovering.

Pay As You Grow Calculator:

You can use our calculator to see how monthly payments and total loan cost might change under these PAYG options.

Download calculator

Representative example*:

The following example may help explain how availing of the different options outlined above could impact your repayments, meaning your business could end up paying more and it could take longer to repay your loan in full.

In this example we’ll assume that your balance is £30,000, the interest rate is 2.5% APR, 2 years have passed on your term and you have 6 years remaining.

Option Original Monthly Repayment Amount: Revised Repayment: Followed by: Total Additional Interest:
Interest only for 6 months £449.13 £62.50 (interest only) £486.98 (over 66 months £178.53
Interest only for 6 months and term extension of an additional 18 months (max 10 years) £449.13 £62.50 (interest only) £365.91 (over 90 months) £969.08
Payment holiday only £449.13 £0 £493.07 (over 66 months) £205.29
Payment holiday and term extension of an additional 18 months (max 10 years) £449.13 £0 £370.48 (over 90 months) £1,005.72
Term extension only (bringing remaining term to 8 years as repayments cannot exceed 10 years) £449.13 £345.12 (over 96 months) £345.12 (over 96 months) £794

*The calculations above and within the calculator are approximations based on rounded figures and approximate timescales. All figures provided are indicative only and subject to change.

For more information or to apply visit our Pay As You Grow page.

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If you’re concerned about cash flow within your business, speak to your relationship manager or small business adviser directly or use our webform to request a call back.

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