Lenders are beginning to contact borrowers who took out Bounce Back Loans (BBLS) in the spring of 2020 regarding repayment.
If able to do so, businesses that can afford to stick to their original repayment schedule will pay less interest over the life of the loan. Borrowers may also now fully repay their loan early and face no early repayment charges.
However, If repayments are not currently affordable, businesses should consider the options available from their lenders and take action.
Pay As You Grow (PAYG) options:
1. Extend the length of the loan from six years to ten years
2. Make interest only payments for six months, with the option to use this up to three times throughout the loan
3. Take a six-month repayment holiday – available once during the term of the loan
If having considered fully the PAYG options but a business is felt to be in financial difficulty, or if a business has formally ceased trading, borrowers should speak with their lender on their circumstances to discuss their options.
For further help or advice, please get in touch.