If you are a Bounce Back Loan borrower, you can request more time and flexibility to pay back the loan.

Pay as you Grow

What is Pay As You Grow (PAYG)?

The government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.

Pay As You Grow options were made available to you once you started to repay your Bounce Back Loans, from 12 months after it was first drawn down.

Using your PAYG options won’t affect your credit score, or negatively affect your credit file. We may use your requests for Pay As You Grow options to help us assess affordability in any future lending applications, for example we will look at your incomings and outgoings, including the future repayments on your Bounce Back Loan, and also the total amount of all your borrowings, which will include the amount of your Bounce Back Loan. 

Any missed repayments and continued arrears will also impact your credit score.

Learn more about Pay As You Grow options

The British Business Bank have produced this short video to explain what Pay As You Grow is and what options you can request under the scheme.

When can I apply?

Pay As You Grow options were made available to you once you started to repay your Bounce Back Loans, from 12 months after it was first drawn down.

The options available to you when you are due to make your first payment after 12 months are as follows:

  1. 01

    If you expect to be in a better position to repay in the future:

    a) You could 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.


    b) You could take a payment holiday for six months.

    This option is available once during the term of your Bounce Back Loan.

  2. 02

    If you’re only able to repay a smaller amount:

    You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.

    If you’re considering this option you should think carefully about your ability to repay over a longer timeframe, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan.

How Pay as you Grow could affect loan repayments

PAYG options may increase your repayments and the total amount you owe as interest costs increase if you repay your loan over a longer period.
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.

More questions about Pay as you Grow?

Visit our Frequently Asked Questions to find further guidance and support

We’re here to help

You do not need to contact us in advance. We will send you a repayment schedule outlining your options, around three months before your first payment is due.

However if you’re worried about your finances, the quickest way to get in touch is via our webchat service, Cora. Using webchat, you can:

get help with an existing loan

talk to us about other support

If you are struggling with your finances, please see our website for support. You can also find a list of organisations who can give you impartial advice on this page.

We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts. 

Start your journey with PayPlan

Message us anytime on WhatsApp

For help with your Business Banking queries, you can now chat with us securely on WhatsApp. 

Working with British Business Bank

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary for State for Business and Trade (formerly Business, Energy & Industrial Strategy-BEIS).

British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

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