Many businesses received a Bounce Back Loan last year in order to help with their cash flow needs – if you have received a loan then read on for some useful information on the options available to you when repaying this.
Under the terms of the Bounce Back Loan agreement, the Government covered the interest costs for the first 12 months of the loan, and the borrower was not required to make any repayments until 12 months after the loan was taken out.
The scheme opened up in May 2020 therefore depending on when you received your loan, repayments under the original agreement restarted from May 2021 onwards.
However, did you know that lenders must give you greater flexibility in repaying the loan, as announced by the Government?
The options available to you are as follows;
- Extending the length of the loan from six years until 10 years (reducing monthly payments by almost half)
- Make interest only payments for six months (can be used up to three times throughout the loan)
- Pause repayments entirely for up to six months
In order to access this flexibility, you should contact your lender who should be able to assist.
More information on these measures can be found here.