You received a payment holiday for the first year of your loan, with the interest being paid for by the Government via a Business Interruption Payment. After the first 12 months, you will need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends. We will send you a repayment schedule outlining your options, around three months before your first payment is due.
Please note you do not need to contact us in advance.
If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month repayment holiday.
Or you can make a one-off repayment, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments.
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 will be available to you up to three months before your first repayment.
Using these options won’t 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.
A useful infographic and video can be viewed here which shows the Pay As You Grow options for the British Business Bank.
b) 6 month Full Repayment Holiday
You could take a payment holiday for six months.
Please note for all three options that the total amount you owe will go up. This is because your interest costs increase as you’re repaying your loan over a longer period.
Your Options Combined
You can use the 6 month Interest only or 6 month Full Repayment Holiday Option and 10 Year Term Extension together if you need to.
Refer to individual options above to understand the impact of each option on the total cost of your loan.
As detailed above the Government has announced Pay as you Grow options for Bounce Back 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. Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall.
You will need to have:
You can only request one ‘Pay As You Grow’ eligible option at a time.
You will not be able to cancel a ‘Pay As You Grow’ option if you change your mind, therefore please take time to refer to PAYG information and our calculator before making your selection. However, if you subsequently decide you no longer require the support provided by the PAYG options, you can still reduce the interest you will pay by making full or lump sum repayments.
If you want Pay As You Grow to start from your next repayment date, please apply as soon as possible. Requests received less than 20 days before the repayment is due may not be processed.
Note: if there are changes to your business or signing authority we may need more time to progress your application.
Please take time to consider the above information and calculator carefully before making your selection.
If you do want to proceed with a PAYG option but do not want to complete the PAYG online application form, please complete the PAYG Enquiry form and we will aim to contact you within 48 hours.
You do not need to contact us in advance. We will send you a repayment schedule outlining your option, around three months before you first repayment is due, then again prior to expiry of any current PAYG option.
However if you’re worried about your finances, please contact us at: BBNICovid-19@boi.com
You can also contact the following organisations for free advice:
Small Business Commissioner (SBC)
The SBC is an independent public body the Government created to tackle late payment and unfavourable payment practices in the UK’s private sector.
UK Finance
Guidance and advice on dealing with debt, from the organisation that represents the UK’s banking and finance industry.
Advice NI – Business Debt Service
Free tailored, independent and impartial advice on debt for sole traders, partnerships and limited companies in Northern Ireland.
StepChange –Debt Charity
Debt advice for self-employed people and sole traders.
FSB Debt Recovery
A debt recovery service for members of the Federation of Small Businesses (FSB). Find out what the service offers and what membership entails.
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.
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All lending facilities are subject to the Bank’s lending conditions. Terms and conditions apply. Bank of Ireland UK adheres to the Standards of Lending Practice which are monitored and enforced by the Lending Standards Board.
Bounce Back Loan Scheme is delivered by the British Business Bank, through Bank of Ireland UK as an accredited lender.
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.
Your eligible deposits with Bank of Ireland (UK) plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Bank of Ireland UK and Post Office Money and savings accounts under the AA Savings brand provided by Bank of Ireland UK. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Please click here for further information or visit www.fscs.org.uk
Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 512956. You can confirm our registration on the FCA's website. Registered in England & Wales (No. 7022885), 45 Gresham Street, London, EC2V 7EH.
