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Pay as you Grow

If you are a Bounce Back Loan borrower, you can request more time and flexibility to pay back the loan.

What is Pay As You Grow (PAYG)?

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 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. Any missed payments and continued arrears will also impact your credit score.

Learn more about Pay As You Grow options

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.

When can I apply?

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.

The options available to you when you are due to make your first payment after 12 months are as follows:

  1. 01

    If you expect to be in a better position to repay in the future:

    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.

  2. 02

    If you’re only able to repay a smaller amount:

    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.

How Pay as you Grow could affect loan repayments

PAYG options may increase your repayments and the total amount you owe as interest costs increase if you repay your loan over a longer period.
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.

More questions about Pay as you Grow?

Visit our Frequently Asked Questions to find further guidance and support

We’re here to help

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 your Relationship Manager. If you don't have a Relationship Manager, please refer to your usual Bank contact.

If you are struggling with your finances, you can get free debt advice. 

We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts. 

Start your journey with PayPlan

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.