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

We’ll contact you 3 months before your first repayment is due to outline your options and how to opt-in. 

You don’t 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 pay in the future you could:

a) reduce your monthly repayments for 6 months by paying interest only. 
This option is available up to 3 times during the term of your Bounce Back Loan. 


b) take a payment holiday for 6 months.

This option is available once during the term of your Bounce Back Loan.

2. If you’re able to repay a smaller amount 

  • You could request an extension of your loan term from 6 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 the amount of interest you will pay will increase as a result of selecting one or more of the Pay As You Grow options.

You can use options 1 and 2 together if you need to. 
Important - You’re not able to opt-in for any of the Pay as you Grow options yet, but we’ll be contacting all customers 3 months prior to their first repayment date with details on the PAYG options and how to opt-in. 

We’re here to help

We will contact you prior to your first repayment date with details of the PAYG options available and how to opt-in.

However, if you’re worried about your finances in the meantime, here are some support options for you to consider.

You can visit our Survive and Revive hub to find a range of support including:

  • toolkits to help you market your business;
  • e-commerce packages to get you trading online; and
  • a series or business support webinars on a variety of topics to help guide you through these uncertain times. 

Our money worries support page gives details of organisations that you could contact for free debt advice, either personally or for your business.

Other business support:

  • 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.  
  • UK Finance have also created this leaflet to assist you with managing debt.

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.
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