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.
Your other repayment options
Pay As You Grow
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 once you start to repay your Bounce Back Loan, from 12 months after it was first approved.
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.
If you have a CBILS loan and are worried about your upcoming repayment(s), it is important that you contact us as soon as possible to discuss your options.
The options available to you when you are due to make your first payment after 12 months are as follows:
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.
b) You could take a payment holiday for six months.
- This option is available once during the term of your Bounce Back Loan.
2) If you’re only able to repay a smaller amount each month:
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, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan.
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.
You can use options 1 and 2 together if you need to. Both options 1a and 1b will be available throughout the course of the loan.
We’re here to help
You do not need to contact us in advance. We will send you a repayment schedule outlining your options, around three months before your first payment is due.
However if you’re worried about your finances, please contact us on 0203 308 9190 or customersolutions@fundingcircle.com.
You can also contact the following organisations for free advice:
Money Advice Service
0800 138 7777
https://www.moneyadviceservice.org.uk/en
Money Advice Scotland
https://www.moneyadvicescotland.org.uk/
National Debtline
0808 808 4000
https://www.nationaldebtline.org/
Stepchange Debt Charity
0800 138 1111
https://www.stepchange.org/
Taxaid - TaxAid offers free, confidential advice on tax to those earning less than £20K p/a
0345 120 3779
Illegal Money Lending Team - For confidential help and advice about loan sharks
0300 555 2222
www.gov.uk/report-loan-shark
Business Debtline - Free business debt advice telephone helpline and online self-help tools
0800 197 6026
www.bdl.org.uk
Debt Advice Foundation
Free debt advice telephone helpline and online self-help tools
0800 043 40 50
www.debtadvicefoundation.org
Citizens Advice
England - https://www.citizensadvice.org.uk/
Scotland - https://www.cas.org.uk/
Advice NI
0800 915 4604
https://www.adviceni.net/advice
Other business finance support options
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.
Reminder of your Bounce Back Loan terms and conditions
When you applied for your Bounce Back Loan, you declared that you understood that:
- You are fully liable for all repayments, and if you are unable to meet these obligations, this could negatively affect your credit score.
- The 100% government guarantee is provided to cover any losses the lender makes and does not cover any losses that you might suffer if you are unable to meet your payment obligations.
- We would not carry out any affordability checks on your application.
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