Bounce Back Loan repayments – Pay as You Grow

Bounce Back Loan repayments – Pay as You Grow

Tuesday, 03 August 2021

Since May 2021, early users of the Government-backed Bounce Back Loan Scheme (“BBLS”) may have already started making their first few monthly repayments now that the interest and repayment free period has come to an end.

If your business is struggling to make the monthly repayments, there are a suite of options available, known as Pay as You Grow (PAYG). These options are designed to help manage cashflow and provide a better chance of getting your business back to growth.

There are three options available to businesses that have started repaying their Bounce Back Loan:

  • Request an extension of your loan term to 10 years from 6 years, at the same fixed interest rate of 2.5%.
  • Reduce your monthly repayments for 6 months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
  • Take a repayment holiday for up to 6 months. This option is available once during the term of your Bounce Back Loan.

As a borrower, you can use these options individually or in combination with each other. You remain responsible for repaying your Bounce Back Loan and are fully liable for the debt.

Be aware that you'll pay more interest overall if you use one or more of these options, and that the length of the loan will increase in line with any repayment holidays you take.

Three months before repayments commence, borrowers should be contacted directly by their lender to communicate PAYG options.

If your business is insolvent, and you do not consider that these PAYG options alone will allow your business to continue, please get in contact so we can discuss the alternative options available to you.

You can find contact details in the Our People section our website. Alternatively, call 0330 024 0888 or email

Lee Green


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