We have always been clear that businesses are responsible for repaying any finance they take out. However, we recognise that some borrowers will benefit from additional flexibility with regards to their repayments. That is why we announced the Pay As You Grow measures last year.
Pay As You Grow is designed to provide Bounce Back Loan borrowers more time and flexibility over their repayments by giving them the option to:
Businesses are able to use these options either individually or in combination with each other. These are only available once a business has started making repayments on the loan. In addition, they have the option to fully repay their loan early and will face no early repayment charges for doing so.
The British Business Bank has a range of guidance and resources available to all businesses, including content on managing cashflow and a list of independent advice services. Details can be found at: https://www.british-business-bank.co.uk/finance-hub/dealing-with-debt/.