Bounce Back Loan Scheme (BBLS)

Greater flexibility with repayments – Pay as You Grow

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 have greater flexibility to repay their loans.

Lenders continue to inform their customers about PAYG directly and will advise customers about how their repayment options may change according to their choices under the scheme. Borrowers remain responsible for repaying their Bounce Back Loan and fully liable for the debt.

Pay As You Grow (PAYG) enables businesses who are repaying their Bounce Back Loans to:

Borrowers can use these options individually or in combination with each other. Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

If you want Pay as you Grow to start from your next loan payment, you need to apply at least 20 days before that payment is due.

Will using Pay as You Grow affect my ability to obtain finance in the future?

Using Pay as You Grow will not, in principle, affect a business’s ability to obtain finance in the future. Pay As You Grow is designed to alleviate borrowers’ financial difficulty, even before it arises, by giving borrowers flexibility in meeting their repayment obligations.

Using Pay as You Grow will not affect a borrower’s credit rating, but it may affect lenders’ future creditworthiness assessments. For example, when considering a request for additional funding a lender will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan Scheme facility.

It will also consider a business’s total debt exposure, which will again include the outstanding Bounce Back Loan Scheme facility.

Other business finance support options

In the first instance, businesses who have concerns regarding repaying debt should contact their lender. At Braemar Finance, we do everything that we can to support our customers through financial difficulty - click here to find out more.

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: