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Using these options will not affect your credit score or negatively affect your credit file. We may use requests for Pay As You Grow options to help us assess affordability in future lending applications. For example, we will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan, and also your total debt exposure, which will include the outstanding Bounce Back Loan.
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Please note: the total amount you owe will go up if you use any of these options. This is because your interest costs will increase as you will be repaying your loan over a longer period.
1. 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.
Or:
b) you could take a payment holiday for six months.
This option is available once during the term of your Bounce Back Loan.
If you select 1a or 1b, you can keep your existing loan term or extend it by 6 months. However, if you have already extended your term to 10 years by using option 2, or would like to, you cannot extend your term by a further 6 months. This is because the maximum loan term allowable is 10 years.
2. 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. For example, you should consider whether you intend to cease trading or retire within the revised term of your Bounce Back Loan.
If you choose to extend your loan term to 10 years in addition to using options 1a or 1b, your loan repayment amount will increase at the end of each payment option as you cannot extend the term of the loan past 10 years.
How could Pay As You Grow affect my repayments?
Before you apply for Pay As You Grow options, you should review your options and make a decision based on your circumstances. To help you with this decision, you can download our repayment calculator in Excel to calculate how Pay As You Grow options could affect your repayments.
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Please note: this calculator is for illustrative purposes only to help indicate the potential impact of Pay As You Grow options. Your amended repayment profile will be confirmed to you once we’ve received your Pay As You Grow request and you will be required to sign loan documentation to confirm that you agree to this.
Before you apply
Please read the important information and steps to applying below carefully before applying for Pay As You Grow options.
Important information
Please note that:
- changes to your Bounce Back Loan cannot be made until 90 days before your first payment is due, or your current payment holiday ends: any requests made outside of this time will not be processed
- you can only select one payment holiday (option 1a or 1b) at a time
- when we receive your request it will be reviewed, and a variation letter will be sent to you confirming the changes you are looking to make, as well as details of your new payments and schedule: changes cannot be made to your Bounce Back Loan unless we have received your variation letter signed in accordance with your account mandate within the timescale specified in the letter
- changes to your Bounce Back Loan account could take up to 15 business days to process, and will come into effect at your next payment due date: it is important that you allow plenty of time for us to make any changes to your account
- you must complete the request form no less than 15 business days before the first payment you wish to change is due: if your request is made less than 15 business days before your next payment is due, we will still process your request, but it will be processed for the following payment and you will need to make your next scheduled loan repayment in full.
Apply
If you have considered all the options available to you and would like to make a change to your Bounce Back Loan then you can do so by completing the steps below.
Step 1: complete the online request form
Complete the online request form more than 15 business days before the first payment you wish to change is due.
Step 2: review and return your variation letter
We will send a variation letter to you via email to confirm your new payment structure. If you are happy with this, sign it in accordance with your account mandate and return it to us by the expiry date specified in the letter to payasyougrowoffers@co-operativebank.co.uk.
Step 3: receive confirmation
We will process your request, make the necessary changes to your Bounce Back Loan account and send a final confirmation that they have been actioned. This can take up to five business days.
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Please note: if we do not receive your signed variation letter by the expiry date, you will need to make your next payment in full under the original loan terms. If this happens, we will need to send another variation letter to agree changes to your loan in time for the following payment. Please ensure that you return the signed variation letter to us before the expiry date.
Financial difficulty
If you’re struggling to repay your loan or worried about your business, we’re here to help.
Business resilience
The British Business Bank has created a guide to building business resilience to help smaller businesses manage their costs, boost their long term profitability and increase their resilience.
Find out more about the British Business Bank’s guide to business resilience
Debt exposure
The total amount of money that you owe to us and other lenders that could be lost if you fail to repay the money.
Disclaimer:
Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. 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. Visit british-business-bank.co.uk
Please note that Bounce Back Loans aren’t subject to the usual consumer protections that apply to business lending. This means you won't have the benefit of the protection and remedies that would otherwise be available to you under the Financial Services and Markets Act 2000, or the Consumer Credit Act 1974. If you're in any doubt as to the consequences of this, we recommend you seek independent legal advice.