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

Pay as you Grow

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.


Lenders continue to inform their customers about PAYG directly and will advise customers about how their repayment options may change according to their choices under the scheme. Borrowers remain responsible for repaying their Bounce Back Loan and fully liable for the debt.


Pay As You Grow (PAYG) enables businesses who are repaying their Bounce Back Loans to:


Extend your loan term

Request an extension of your loan term to 10 years from six years, at the same fixed interest rate of 2.5%

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Reduce payments for 6 months

Reduce your monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan

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6 month repayment holiday

Take a repayment holiday for up to six months. This option is available once during the term of your Bounce Back Loan.

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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.

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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.

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

In addition, the British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services:

Guide to business resilience

The British Business Bank’s Guide to Building Business Resilience is packed with impartial, practical, and actionable information to help smaller businesses manage costs, boost profitability, and increase resilience.

The Finance Hub

Designed to simplify the complexities of business finance, the Finance Hub is a comprehensive online resource that empowers businesses of all sizes, from start-ups to established companies, offering a diverse range of information and resources to navigate the world of finance. It serves as a centralised hub where you can find independent and impartial guides, checklists, and articles, carefully curated to provide you with the knowledge needed to make informed financial decisions for your business.

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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Message us anytime on WhatsApp

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