When will my Bounce Back Loan repayments start?

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 automatically collect your repayments using the payment details set up when you opened your loan. If your payment details have since changed, please let us know.

You’ll pay less if you pay back early

If you no longer need the loan, you can choose to pay it back early, which means 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 of any amount, as well as additional payments on a regular basis. If you do this it’ll help save you money on your interest payments.

Take a look at the ‘Making an overpayment and repaying your BBL’ section at the bottom of this page to learn more.

Your Pay As You Grow repayment options

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.

You’ll be able to choose Pay As You Grow options from 3 months before your first repayment date.

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.

The Pay As You Grow options (that will be made available to you 3 months before your first repayment date) 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 6 months by paying interest only. 

Illustrative example:

  • On a loan of £50,000 this would reduce monthly payments from £936.49 to approximately £106.16 during the 6 month period.
  • You’ll pay more interest overall, so the total amount repayable on a £50,000 loan would increase from £54,431.60 to £55,056.94, unless you repay early. 
  • You’ll have the choice to extend your loan term for an additional six months if you take this option but regardless, your interest costs will increase. If you keep your original loan term a larger amount of your loan is outstanding for longer and if you extend your loan term by 6 months, you're repaying your loan over a longer period.

  • This option is available up to 3 times during the term of your Bounce Back Loan.

Take a look at what repayments might look like (804 KB) for each of the Pay As You Grow repayment options. 

Or

b. You could take a payment holiday for 6 months. 

Illustrative example:

  • You’ll make no capital repayments or interest payments during this time. 
  • The total amount you owe will go up. This is because your interest costs will increase as interest accrues during the payment holiday and so the total amount repayable on a £50,000 loan would increase from £54,431.60  to £55,100.49, unless you repay early. You’ll have the choice to extend your loan term for an additional six months if you take this option but regardless, the total amount you owe will go up. If you retain your original loan term a larger amount of your loan is outstanding for longer and if you wish to extend your loan term by 6 months, you're repaying your loan over a longer period. 
  • This option is available once during the term of your Bounce Back Loan.

 Take a look at what repayments might look like (804 KB) for each of the Pay As You Grow repayment options.

2. If you can only repay a smaller amount each month:

You could request an extension of your loan term from 6 years to 10 years at the same interest rate of 2.5%*.  

Illustrative example:

  • Extending your loan term to 10 years would reduce your first repayment (at month 13) on a loan balance of £50,000 from £939.49 to £569.12 (these figures comprise capital plus interest).  
  • You’ll accrue more interest, so the total amount repayable on a £50,000 loan (capital plus interest) would increase from £54,431.60  to £56,933,31, unless you repay early. 

*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 stop trading or retire within the revised term of your Bounce Back Loan. 

Take a look at what repayments might look like (804 KB) for each of the Pay As You Grow repayment options. 

You can use options 1 and 2 together if you need to. Both options 1a and 1b will be available throughout the course of your loan term.

Please note for all 3 options the amount of interest you will pay will increase as a result of selecting one or more of the Pay As You Grow options.

Remember, the Pay As You Grow options won’t be available until 3 months before your first repayment date. We’ll email you to let you know when your first repayment date is approaching and how you can opt in. 

For more information on how to apply for Pay As You Grow, please take a look at our  ‘Choose a Pay As You Grow option’ section at the bottom of this page.

The British Business Bank has produced a Pay As You Grow video and digital infographic to help you understand the PAYG options you can opt for prior to starting to pay back your Bounce Back Loan.

About our calculations

The examples for options 1a and 1b above assume that a customer will choose to extend their loan term for an additional 6 months. This would mean that their total loan term would be 6 years and 6 months.

The illustrative examples are based on each PAYG option being taken individually, and assume the option is taken before the first repayment date is due. The figures in the examples above have been calculated and based on a £50,000 loan with an original drawdown date of 06/05/2020, so your repayment amount may be different due to the specific date you took out your loan. The illustrative examples are solely for information purposes only, offered as a guide to how your repayments could be impacted by taking one of the PAYG options.  They’re not meant to be relied upon for an accurate representation of what your own repayments will be.

We’re here to help

We’ll be in touch before your first repayment date to let you know more about Pay As You Grow 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 help including:

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

Our Independent help and 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 guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.  

Contact us:

If you don’t believe any of the Pay As You Grow options or above support can help, you've already taken independent debt advice and you’d still like to speak to us, please contact us on 0800 085 1167. 
 
If you have, or are about to, enter insolvency please call us on 0800 404 6185. 

If you have any specific Pay As You Grow related queries, please send them to our dedicated mailbox PAYGenquiries@santander.co.uk and we’ll respond to you as soon as we can.

Using Online Business Banking you’ll be able to:

  • see your Bounce Back Loan (BBL)
  • see any communications we send you about it
  • make one-off payments
  • select your repayment options; and
  • repay your loan in full.

If you’re not registered for Online Business Banking or have forgotten your log on details, take a look at our support page for further information.

How can I view my BBL online?

Once you log into Online Business Banking, your Bounce Back Loan will show under the ‘Business Borrowing’ section. On the Online Business Banking home screen, all loans (including your BBL) will be named as ‘Unsecured Business Loan’ and will show the business name that holds the loan. Further details on each loan can be found by clicking into each ‘Unsecured Business Loan’ product. If you have more than one loan (for example, a BBL and an Unsecured Business Loan), you may find it useful to rename the loans so you can find them easier in future. You can do this by clicking on the ‘Add, remove or rename an account' tab at the top of the 'Business Borrowings' category. 

On the second screen you’ll see the product name ‘Bounce Back Loan’ and product details of your BBL, including payments, interest and amount outstanding will be displayed. 

How can I see communications about my BBL?

We’ll start to send you important communications about your BBL repayments 3 months before your first repayment is due. You’ll be able to see them when you log into Online Business Banking.

We’ll email you when there’s new information about your BBL. To see it:

  • log on to Online Business Banking
  • go to ‘e-Documents’ in the left-hand menu.

If you’re not registered for Online Business Banking or have forgotten your log on details, take a look at our support page for further information.

Where can I find the sort code and account number for my BBL?

You’ll able to find further details such as product name, name of business (if you have more than one business), sort code and account number in Online Business Banking. When you log on, clicking on each ‘Unsecured Business Loan’ will take you to the screen where these details are shown.

We’ll also include your BBL sort code and account number in the communications that we’ll send to you 3 months before your first repayment date. 

How do I choose a Pay As You Grow (PAYG) repayment option?

Log on to Online Business Banking to choose your options. If you’re not registered or have forgotten your details, you can find information on our support page

If you want your Pay As You Grow option to take effect for your next repayment date, make sure you choose your option more than 5 working days before your next Direct Debit is due.

Make sure you’ve read the information and illustrative examples on this page. Then log on to Online Business Banking and:

  1. Click on the ‘Unsecured Business Loan’ entry for your Bounce Back Loan. If you have more than one ‘Unsecured Business Loan’ shown, please make sure that you choose the one that relates to your Bounce Back Loan.
  2. The second screen will show you repayment details for your Bounce Back Loan. Click the red ‘Pay as you Grow options’ button underneath the box with your Bounce Back Loan details. Remember, you’ll only be able to choose Pay As You Grow options from 3 months before your first repayment date. If the options are greyed out, that means you  can’t choose them yet, and we’ll email you when you can.
  3. Now you can choose which PAYG option you’d like to use. You can choose to pay interest only for 6 months, take payment holiday or extend your loan term. You’ll be able to see how your chosen option will affect your repayments before you confirm your selection.

Please remember that once you’ve chosen your PAYG option and clicked ‘confirm’, you won’t be able to change it.

Confirmation of your PAYG option: An e-Document confirming your new repayment details will be available in your Online Business Banking within 2 working days of you choosing your PAYG option. To see it:

  • log on to Online Business Banking
  • go to ‘e-Documents’ in the left-hand menu.           

Log on to choose PAYG  

How soon will my Pay As You Grow option be applied?

Your Pay As You Grow option will take effect from your next repayment date as long as you choose your option more than 5 working days before your next repayment is due. If you choose your option within 5 working days of your next repayment date, your repayment will be taken as scheduled and your Pay As You Grow option will be applied from the next month.

Choosing more than one Pay As You Grow option

If you’d like to use more than one PAYG option, you’ll need to submit each request individually. You’ll need to wait 2 working days after submitting your original request before you’ll be able to choose another PAYG option.

Choosing more than one payment holiday option

If you’ve chosen one of the payment holiday options (either paying interest only for 6 months or taking a payment holiday for 6 months), and you’d like to choose another one when your current holiday ends, you must do it when you’re within 30 days of your current payment holiday ending.

You’ll pay less interest if you pay back early. 

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 date your 12-month repayment holiday ends. 

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. 

How do I make an overpayment or a full repayment on my BBL?

You’ll be able to make a full or partial repayment on your BBL through your Online Business Banking. If you’re not registered or have forgotten your log on details, take a look at our support page for further information.

To make a partial repayment, or to pay the full amount back, please follow the steps below:

  1. Log into Online Business Banking
  2. Make a note of your BBL sort code, account number and settlement figure if making a full repayment. (A settlement figure is the amount you need to pay if you’re paying the full amount of your loan back. You can find it, along with your loan account details by clicking on the relevant ‘Unsecured Business Loan’ product. If you have more than one ‘Unsecured Business Loan’ shown, please make sure that you select the one that relates to your BBL)
  3. Click the ‘Payments and Transfers’ tab 
  4. Set up a new payment using your loan sort code and account number and enter the amount you wish to repay. 

If you’re making a full repayment the settlement figure is only valid on the day you wish to settle. 

Remember, you’re only eligible for one BBL so please check that the repayment amount and loan account details that you enter are correct. If you settle your BBL in full (or make a partial overpayment that settles your BBL in full) you won’t be able to apply for a new BBL or BBL top up.

Any repayments will reduce the future monthly repayment amounts, and not the loan term.

It may take up to 2 days for the payment to show on your loan in Online Business Banking. If you’ve made a full repayment, your BBL balance will show as £0 until the loan account has been closed. 
 

 
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