Bounce Back Loans Support
Many small businesses across the country have been struggling to stay afloat during the pandemic. To help them out, the government introduced the Bounce Back Loan (BBL) Scheme.
However, many organisations are struggling with the BBLs that are now due. But there is support available, which is explained on this page.
Pay As You Grow
Pay as you grow enables businesses to request either an extension to their bounce back loan at the same interest rate, pay interest only on the loan or take a payment holiday
The pay as you grow extension lasts 10 years at the same interest rate of 2.5%.
The extension can only be requested once.
Businesses can opt to pay interest only on their BBL for six months.
Businesses can request interest-only payments three times, which means they can pay only the interest for a total of 18 months.
The payment holiday would last six months.
The payment holiday option is only available once.
The pay as you grow scheme becomes available for a business three months before their first bounce back loan repayment is due.
Lenders assess businesses existing debt exposure before deciding whether to lend money. If bounce back loan repayments are still on the books, it may negatively affect the chance of future lending.
No, the pay as you grow scheme will not affect your credit rating.