Bounce Back Loan scheme

You can apply for the Pay as you Grow Options if

• You currently have a Bounce Back Loan
• You’re nine months in to your initial payment holiday – this will take effect when your payment holiday ends

You can apply for any of these options, or all of them, once they’re available for your loan. There are no additional fees and this doesn’t impact your ability to pay off the loan early.

The deadline depends on your remaining loan term. If it’s 

• Less than three months, you won’t be able to apply for a Pay as you Grow option – so please make sure you apply before the remaining term of your Bounce Back Loan reaches that point
• Nine months or less, you’ll need to apply through your usual Barclays Business contact – you can’t apply in Online Banking or the Barclays app.

The wording below is from the British Business Bank, and covers information about your credit file and the Pay as you Grow options:

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.

What does this mean for you?

Although using Pay as you Grow won’t affect your credit score or negatively affect your credit file, any late or missed payments could impact your credit rating, so it’s important to try and catch up on any arrears. Our ‘Build your business credit score’ page has more information on why your business credit rating is important and how to keep your credit rating healthy.

You can

• Extend the term of your loan from six years to 10 years
• Make interest-only payments for six months – this option is available up to three times during the term of your Bounce Back Loan
• Make no repayments for six months (capital and interest) – this can be used once during the term of your Bounce Back Loan

The online Bounce Back Loan repayment calculator includes both the capital and interest in your estimated repayment amount. These amounts are indicative and aren’t the exact amount of your repayment. Your facility letter just shows your capital amount without the 2.5% interest.

You can apply for Pay as you Grow from the menu at the top right. Select ‘Products and services’, ‘Borrow’ then ‘Bounce Back Loan – Pay as you Grow’. You’ll then need to select the business associated with the Bounce Back Loan you’d like to apply Pay as you Grow to.

If you've already registered but can’t find your log-in details, you can reset them here.

If you have a complex mandate, you’ll need to speak to us to apply. This is because more than one person is needed to authorise changes. You can either get in touch with your usual Barclays contact, or request a call back from us.

If you’re listed on the mandate and have access to Online Banking or the Barclays app, you can apply for Pay as you Grow digitally, as long as you’re authorised to do so on behalf of the business. If you aren’t listed on the mandate or don’t have full access to Online Banking or the Barclays app, you can apply by talking to your usual Barclays Business contact.

This is because you’ve already applied for an option and can’t take a further payment holiday at the same time, until you have three months left of your existing holiday. You can extend the term of your loan and take an interest-free period or repayment holiday at the same time.

If you’re a Barclays International client, please contact your usual Barclays Business contact. They’ll be able to process an application on your behalf.

Online Banking
On the homepage, head to your Bounce Back Loan, where you’ll find ‘Repayment options’. You’ll be able to view the Pay as you Grow options there.

If you’re zoomed in 400% or more, or you’re looking at Online Banking on a mobile or tablet, from the top-right menu, select ‘Products and Services’, ‘Borrow’ then ‘Bounce Back Loan – Pay as you Grow’. You’ll then need to select the business associated with the Bounce Back Loan you’d like to apply Pay as you Grow to.

App
On the homepage, tap on your Bounce Back Loan, where you’ll find ‘Repayment options’. You’ll be able to view the Pay as you Grow options there.

If you apply for Pay as you Grow at least 20 days before your next loan repayment is due, it’ll start from that repayment date. If you apply later than that, it’ll start from the following repayment date.

You won’t be able to apply for Pay as you Grow in Online Banking or the Barclays app if you can’t make your current Bounce Back Loan repayments. Instead, we’ll need to talk to you to make sure we fully understand your financial situation. Please speak to your usual Barclays Business contact about the next steps. You can also get help with business debt, and use our Bounce Back Loan repayment calculator to see the effects of Pay as you Grow on your loan, at Barclays business money management.

To cancel your application, please speak to your usual Barclays Business contact. How quickly we can cancel an application depends on how soon you get in touch after sending it and the date of your next loan repayment.

Our Bounce Back Loan repayment calculator can help you understand how Pay as you Grow could affect your repayments and the total amount you need to repay.

It’s not possible to choose a specific date because Pay as you Grow options start based on when you apply.  

• If you want Pay as you Grow to start from your next loan repayment, you need to apply at least 20 days before that repayment is due
• If you’d prefer to start the Pay as you Grow option from a future repayment date, please apply 20 days before that date.

There can be a delay between us confirming receipt of your application by email and sending you a letter to confirm your new loan details. This can happen if you’ve taken, or have requested, a repayment holiday before you apply for the term extension. It happens because we apply the term extension in time for your next repayment date, which follows the end of your repayment holiday. 

There’s no need to worry. These scheduled emails confirm the date your repayments start before any Pay as you Grow options have been applied to your loan. If you have selected options, we’ll send you a separate letter confirming your next loan arrangement about 15 days before your first repayment. 

You can check the details of the Pay as you Grow option you applied for in the email we sent to confirm receipt of your application. 

If you already have an active interest-only payment period or a repayment holiday, you can apply for another PAYG option three months before the end of your current interest-only payment period or repayment holiday. With PAYG, you can apply for up to three six-month interest-only periods and one six-month repayment holiday.

When you make an overpayment on your loan, we keep your monthly repayments the same. This means you’ll repay the loan sooner and pay less interest overall. It’s important to consider the impact this will have on your Pay as you Grow options because

• If you make overpayments and then apply for a term extension, your term will be increased to the maximum of 10 years
• Any overpayments made after the term extension is applied will reduce your term from 10 years. This also happens if you apply for a six-month term extension with either an interest-only payment period or a repayment holiday

Your loan repayment is made up of two parts: your capital repayment and your interest payment.

• Your capital repayments pay off the amount of the loan that you have borrowed, and they’ll be the same each month
• Your loan also incurs 2.5% interest, so each month you’ll be charged interest on the remaining capital balance – that’s the amount of money you still owe
• Because of this, the amount of interest you pay each month will go down, as you repay your loan
• This means your first monthly repayment will be the highest, and the total monthly repayment amount (made up of both your loan and the interest) will be different every month

Your loan agreement sets out how much your capital repayment amount will be each month, but it doesn’t include your interest. We understand this can be confusing, so you’ll also get a letter telling you exactly what your next total repayment amount is every month – we’ll send it around 15 days before your repayment is due.

You can pay back the loan any time, with no early repayment fees or penalties. However, please bear in mind

• Any advance payments or overpayments will reduce the term of the loan – this means the loan will be paid off earlier, so you’ll pay less interest overall. However, your monthly repayments will stay the same
• Your loan agreement won’t be updated
• Payments to the loan can't be returned or redrawn

Repayments on your original loan and top-up amount will start at the same time. For example, if your original loan repayments are due to begin in June 2021, your top-up repayments will start then as well.

Your new top-up will appear as a separate account in Online Banking and the Barclays app, alongside the original Bounce Back Loan you took out. There’s no need to worry – you only have one Bounce Back Loan. Both the original loan and the top-up will run to the same term and be charged the same rate of interest. Any future actions you take – for example, taking advantage of the upcoming ‘Pay as you Grow’ features – will apply to both your original loan and your top-up.