Businesses that took out Bounce Back Loans in response to COVID19 now have greater flexibility in repaying their loans.
Borrowers now have the option to tailor payments according to their individual circumstances. This is available under the new ‘Pay as You Grow’ scheme. Pay as You Grow will be available to over 1.4 million businesses. There is also an option to delay all repayments for a further six months. The option to pause repayments will be available to all from their first repayment, rather than after six repayments have been made.
Pay as You Grow will also enable borrowers to extend the length of their loans from six to ten years. This reduces monthly repayments by almost half. Borrowers can also make interest-only payments for six months. They are able to tailor their repayment schedule to suit their individual circumstances.
Lenders should proactively and directly inform their customers of Pay as You Grow.
Businesses will be provided with the following options:
- Extend the length of the loan from six years to ten
- Make interest-only payments for six months, with the option to use this up to three times throughout the loan
- Pause repayments entirely for up to six months
If you need support in managing your personal or business finances during this time, please get in touch with our team.