New ‘Pay As You Grow’ facility will enable more flexible repayments on Bounce Back Loans for UK smaller businesses…

Originally announced by the Chancellor of the Exchequer in September 2020, ‘Pay As You Grow’ (PAYG) will enable businesses who are due to start repaying their Bounce Back Loans to:

• Request an extension of your loan term to ten years from six years, at the same fixed interest rate of 2.5%
• 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
• Take a repayment holiday for up to six months. This option is available once during the term of your Bounce Back Loan

Borrowers can use these options individually or in combination with each other and remain responsible for repaying their Bounce Back Loan and fully liable for the debt.

Lenders will start to communicate ‘Pay As You Grow’ (PAYG) options to Bounce Back Loan Scheme borrowers three months before repayments commence. Lenders will inform their clients about PAYG directly, so borrowers should wait until they are contacted by their lender before enquiring about the scheme.

UK businesses first began to receive BBLS loans in May 2020 and the first repayments will become due from May 2021 onwards.

The Bounce Back Loan Scheme has supported nearly £45 billion of loans to 1.5 million businesses across the UK.

As businesses continue to recover many will be looking to raise additional finance.  Here at Independent Business Finance we offer a wide range of traditional Business Finance solutions, including Invoice Finance, Asset Finance, VAT Finance to name just a few.

For further information call our office: 01204 398816