Bounce Back Loan - Support for your repayments - Pay as You Grow options
The Government has announced that businesses will be given more time to repay bounce back loans under a “Pay As You Grow” initiative.
The below sets out more information on the Government’s Pay As You Grow options, which provide support for your repayments on your Bounce Back Loan.
You can apply for a Pay As You Grow option 30 days before your first repayment is due using the application form below. In order for your Pay As You Grow option to take effect the month you apply, you must return your signed documentation to us no later than 10 days before your payment is due. Documentation received after this time will be processed and the option applied the following month.
Pay As You Grow for your Bounce Back Loan
Pay As You Grow is a set of UK Government options that gives Bounce Back Loan Scheme borrowers more time and flexibility to repay their loan as trading conditions evolve. These options are designed to ease short-term pressure on cash flow while still keeping you on track to repay what you owe over the life of the facility.
Who can use Pay As You Grow
- Available to customers with an active Bounce Back Loan Scheme facility that has entered repayment.
- You remain responsible for repaying your Bounce Back Loan in full and are fully liable for the outstanding balance.
- We will usually contact you around three months before your first repayment is due to outline your Pay As You Grow options and how to request them.
Your main options
You may be able to use one or more of the following options, depending on your circumstances and eligibility:
Extend your loan term
- You can ask us to extend your Bounce Back Loan term from six years up to ten years, keeping the government-set fixed interest rate of 2.5% per annum. This reduces your monthly repayments but increases the total amount of interest you pay over the life of the loan.
Interest-only periods
- You can ask us to switch to interest-only repayments for up to six months at a time, and you can usually use this option up to three times during the term of your loan. This may help if you expect trading to improve and need short-term support with cash flow.
Repayment holiday
- You can request a full repayment holiday for up to six months, during which you will not make any capital or interest payments. This option can normally be used once during the term of your loan. Interest will continue to accrue during this period, so your total repayment cost will increase.
Depending on the scheme rules and your circumstances, some options can be combined, for example extending your term and then taking an interest-only period.
Things to consider
- Using Pay As You Grow will not, in itself, change your credit score, but it may be taken into account when other lenders assess affordability and your overall borrowing in the future.
- Any change that extends the time you take to repay, or that reduces or pauses your repayments in the short term, will increase the total amount of interest you pay.
Before choosing an option, think carefully about:
- Your current and expected cash flow.
- The impact on the overall cost of your borrowing.
- Any other existing or planned borrowing.
If you are unsure, you may wish to seek independent professional advice or free, impartial debt advice.
More information
For more information on the Bounce Back Loan Scheme and Pay As You Grow, including a summary of the options and scheme guidance, you can visit the British Business Bank:
These external pages provide general information about the scheme and do not replace the specific information we provide to you directly.
If you are a Danske Bank Bounce Back Loan customer and are eligible to apply for Pay As You Grow, you can apply now.
Apply nowDigital Signing for faster applications
Digital Signing will help us process your application, on average, up to five days quicker. Documents are delivered straight to our secure Digital Signing Portal, allowing you to sign your application wherever you are, and it's not just for Pay As You Grow!
Digital Signing is available to our customers who are registered and using our online business banking platform, District. For more information see our Digital Signing page.
If you are not a District customer, but want to take advantage of Digital Signing now and in the future, please see our District page and we will be happy to arrange access to our online banking solutions for you.
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.
You can find these resources on their website using the link below:
Guidance and ResourcesWe’re here to help
We will send you correspondence, reminding you of your first monthly repayment date and your monthly repayment amount, around three months before your first payment is due. This correspondence will also give you more information on how you can apply for the PAYG options. You can apply for a Pay As You Grow option 30 days before your first repayment is due.
However if you’re worried about your finances, please review our web page on financial difficulty.
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.
For the full set of declarations you made, please refer to your Bounce Back Loan facility letter.
BBLS is delivered by the British Business Bank, through Danske Bank as an accredited lender.
The Bounce Bank Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. 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. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. Visit british-business-bank.co.uk.
The provision of the BBLS guarantee does not imply an endorsement pr warranty of Danske Bank from the Secretary of State for Business & Trade or the UK Government.
