Repaying your Bounce Back Loan

Bounce Back Loan Scheme

Supporting UK businesses during coronavirus, the Bounce Back Loan Scheme is now closed.

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.

You remain fully liable and responsible for repaying your Bounce Back Loan.

Pay As You Grow (PAYG) enables you with repaying your Bounce Back Loans, with the following options available:

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

You can use these options individually or in combination with each other. You should be aware that you will pay more interest overall if you use one or more of these options.

Choosing your Pay As You Grow option

If you would like to apply for one of the above options, or have any further questions, please call our relationship managers team directly on 0330 828 1858, email centralrmteam@allica.bank or fill out the contact form below. Following this, you will be sent a PAYG amendment letter to sign to confirm your agreement to taking this PAYG option.

Your PAYG option will take effect from your next repayment date as long as you sign the PAYG amendment letter more than 5 working days before your next repayment is due. If you choose your option within 5 working days of your next repayment date, your next repayment will be taken as scheduled and your PAYG option will be applied from the following month.

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 your 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 your business 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 your business’s total debt exposure, which will again include the outstanding Bounce Back Loan Scheme facility.

Here to help

If you have any questions, or you're worried about your finances and how you're going to repay, please contact your relationship manager, who will be happy to help.

You can call our specialist relationship managers team directly on 0330 828 1858. Alternatively, email centralrmteam@allica.bank, or use the contact form below.

You can also contact the following organisations for free advice:

• Business Debtline (0800 197 6026)
• Money Advice Service (0800 138 7777)

In addition, there's a range of guidance and resources about managing debt available to all businesses through the British Business Bank, including guide on managing your cashflow and a list of independent advice services.

Bounce Back Loan terms & conditions

When you applied for your Bounce Back Loan, you declared that you understood that:

• You‘re fully liable for all repayments, and if you’re unable to meet these obligations, this could negatively affect your credit score.
• The 100% government guarantee is provided to cover any losses the lender makes and does not cover any losses that you might suffer if you‘re unable to meet your payment obligations.
• We would not carry out any affordability checks on your application.