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Can my business pay back a loan early?

Coronavirus Business Interruption Loan Scheme (CBILS):

You can repay your CBILS loan in full at any time after the first four months, with no repayment fee. If you repay your CBILS loan after the first 12 months, you must pay the interest due until the next repayment date. Please note, under clause 4.1 of the CBILS Loan Conditions, if a CBILS loan is repaid fewer than eight days before the next scheduled repayment date, you will need to pay interest up to the subsequent scheduled repayment date (and so will incur a further month’s interest).

Please also note, the loan amortises over the course of the loan, as demonstrated in the example below:

For example:

If you took out a CBILS £55,000 loan for 36 months with an interest rate of 6% the total you would have to repay over that 36 month period would be £58,503. If after 12 months you wanted to repay the loan you would only pay back £55,000 (as you don't pay any interest for the first 12 months),  saving you £3,503. If after 24 months you wanted to repay the loan you would pay back only £57,574 saving you £929.

Bounce Back Loan Scheme (BBLS):

You can repay your BBLS loan in full at any time during the term of your loan. If you repay your BBLS loan after the first 12 months, you must pay the interest due until the next repayment date. Please note, under clause 4.1 of the BBLS Loan Conditions, if a BBLS loan is repaid fewer than eight days before the next scheduled repayment date, you will need to pay interest up to the subsequent scheduled repayment date (and so will incur a further month’s interest).

Please also note, the loan amortises over the course of the loan, as demonstrated in the example below:

For example:

If you took out a BBLS £25,000 loan for 72 months with its fixed interest rate of 2.5%, the total you would have to repay over that 72 month period would be £26,621. If after 12 months, you wanted to repay the loan, you’d only pay back £25,000 (as you don’t pay any interest for the first 12 months), saving you £1,621. If after 24 months you wanted to repay the loan, you would then pay back only £25,571 — a saving of £1,050. At 36 months, this would become £26,021 and you’d save £600 and if you paid back in 48 months, you’d pay £26,349 and save £272. Finally, at 60 months, you’d pay back £26,550 and save £71.

Funding Circle loans taken out before 17th April 2020:

For loans taken out prior to 17th April 2020, you can repay your loan in full at any time with no repayment fees.

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