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Bounce Back Loan scheme

Supporting UK businesses during coronavirus

The Bounce Back Loan Scheme closed for new applications and top-ups on 31 March 2021.

If you already have a Bounce Back Loan with us, the quickest way to apply for Pay as you Grow is in Online Banking or the Barclays app.

If you want Pay as you Grow to start from your next loan payment, you need to apply at least 20 days before that payment is due.

What's Pay as you Grow?

The government announced Pay as you Grow for Bounce Back borrowers to help businesses get back to regular trading. Pay as you Grow gives you more time and flexibility to pay back your loan.

For more information, read our FAQs.

Repayment Calculator

Use our Bounce Back Loan repayment calculator to see how much your payments will be and the total amount you’ll pay over the term – with or without any Pay as you Grow options.

Please note that the amounts shown are indicative and could vary from your actual payment amount.

How can I apply?

If you already have a Bounce Back Loan with us, the quickest way to apply for Pay as you Grow is in Online Banking or the Barclays app. Eligibility criteria apply.

For Pay as you Grow, there’s no need to contact us – we'll be in touch with information about your payments and your Pay as you Grow options well ahead of your first payment.


What are my Pay as you Grow options?
 

If you want Pay as you Grow to start from your next loan payment, you need to apply at least 20 days before that payment is due. Our Bounce Back Loan repayment calculator can help show you the impact of Pay as you Grow on your monthly payments and the overall amount you’ll have to pay. This information can be tailored to your individual circumstances.

The wording below is from the British Business Bank, and covers the payment of your Bounce Back Loan. We’ll send you regular reminders to let you know when your payments will start and how much you’ll pay. There’s no need to contact us, we'll contact you with information on your payments and your options ahead of your first payment.

Option 1: You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.

  • Extending to 10 years would reduce your monthly payments
  • You’ll accrue more interest, so the total amount payable would increase, unless you pay early
  • If you’re considering this option, you should think carefully about your ability to pay 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

Option 2: You could take a payment holiday for six months.

  • The total interest you pay will increase and you’ll have to repay a larger amount overall
  • This can be used once during the term of your Bounce Back Loan
  • This means you make no payments for six months (capital or interest). You’ll still be charged interest during the six-month payment holiday and this’ll be added to the amount of your loan. As a result, your remaining loan payments will go up
  • You can also extend the term of your loan by six months at the same time (to a maximum of 10 years) to keep your payments similar to what they are now

Option 3: You could reduce your monthly payments for six months by only paying the interest.

  • The total interest you pay will increase and you’ll have to repay a larger amount overall
  • This option is available up to three times during the term of your Bounce Back Loan
  • You can also extend the term of your loan by six months at the same time (to a maximum of 10 years) to keep your payments similar to what they are now

 

You can use option 1 along with either option 2 or 3. Both option 2 and 3 will be available throughout the course of your loan term. 

This video, from the British Business Bank, explains your options under the Pay as you Grow scheme

  • Pay as you Grow eligibility

    Is your business eligible for Pay as you Grow? 

    You can apply for Pay as you Grow in Online Banking or the Barclays app if

    • You currently have a Bounce Back Loan with us
    • You’re at least nine months into your initial payment holiday – this will take effect when your payment holiday ends
    • You’re listed on the mandate and have full access to Online Banking or the Barclays app. You also need to be authorised to make changes on behalf of the business account

    You can apply for any of the Pay as you Grow 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 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.

    If you want Pay as you Grow to start from your next loan payment, you need to apply at least 20 days before that payment is due.

    Paying your Bounce Back Loan

    The following wording is from the British Business Bank, and covers the payment of your Bounce Back Loan. We’ll send you regular reminders to let you know when your payments will start and how much you’ll pay. 

    You received a payment holiday for the first year of your loan, with the interest being paid by the government. After the first 12 months, you’ll need to start making monthly payments to pay the amount you borrowed, plus interest from the date your payment holiday ends.

    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.

    We’ll send you a payment schedule outlining your options, around three months before your first payment is due. Please note, you don’t 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 payment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month payment holiday. Or you can make a one-off payment, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments. 

    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.

    You can apply for Pay as you Grow when you’re nine months in to your initial payment holiday (this will then take effect when your payment holiday ends).

    We’re here to help

    You don’t need to contact us in advance. We will send you a payment schedule outlining your options, around three months before your first payment is due.

    If you’re worried about your finances, please visit our money management hub where you can find articles on cashflow including tools and calculators to help you plan and manage your finances.

    You can also contact the following organisations for free advice

    Business Debtline – chat online or call 0800 197 6026 

    National Debtline – if you live in England, Scotland or Wales call 0808 808 4000

    Citizens Advice – online or visit your local Citizens Advice centre  

    Other business finance support options
    In addition, the British Business Bank are aware businesses may be worried about their finances or how to manage payments of their Bounce Back Loan. They have a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

  • Bounce Back Loan eligibility

    The Bounce Back Loan scheme closed for new applications and top-ups on 31 March 2021.

    The below information applied before that date.

    If you started your application before 31 March, we will be in touch shortly – there’s no need to call us.

    You can apply for a loan if your business

    • Is based in the UK
    • Has been negatively affected by the coronavirus situation
    • Was established on or before 1 March 2020
    • Is not in bankruptcy, liquidation or undergoing debt restructuring

    Ineligible businesses

    The following businesses aren’t eligible to apply

    • Banks, insurers and reinsurers (but not insurance brokers)
    • Public-sector bodies
    • State-funded primary and secondary schools

    If you’re not eligible, get in touch with your Business Relationship team to talk about borrowing options that could be right for you.

    To apply for a Bounce Back Loan with us, you’ll need to be a Barclays Business customer, or have a personal current account with us that was opened on or before 1 March 2020. If you are not already a customer but have a new customer appointment in the diary before the end of the scheme on 31 March 2021, we’re able to offer a Bounce Back Loan if you meet the eligibility criteria.

    There are no further new customer appointments available between now and the end of the scheme. If you run your business through accounts with another bank, please contact them to discuss applying for a Bounce Back Loan.

    You’ll also need to provide proof that your business was trading through that personal account on or before that date and be able to provide the additional documents on this list.

    If you run your business through accounts with another bank, please contact them to discuss applying for a Bounce Back Loan.

    Further information

    The Bounce Back Loan scheme closed for new applications and top-ups on 31 March 2021. If you started your application before then, we’ll be in touch shortly – there’s no need to call us.

    • Businesses from all sectors can apply for a facility1
    • Interest rate fixed at 2.5%
    • No principal repayments for the first 12 months
    • No set up or application fees
    • No early repayment fees
    • No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle
    • You’re responsible for repaying 100% of the loan. Where default occurs, we follow our standard commercial recovery procedures (including the realisation of security) before we make a claim against the government's guarantee for any shortfall. Loans are available to most business sectors, but restrictions apply
    • Term extensions to ten years will be available as part of a flexible repayment plan (subject to application) – we’ll update this page when we have more information

    You can apply to borrow up to 25% of your turnover in the 2019 calendar year, up to a maximum of £50,000.

    If your business was established after 1 January 2019, you should apply the 25% to your estimated annual turnover from the date you started your business.

    Before you apply please read this important information.

    You may be able to apply to refinance existing Coronavirus Business Interruption Loans, the Coronavirus Large Business Interruption Loans, or Covid Corporate Financing Facility loans into a Bounce Back Loan. Eligibility criteria apply.

    We'll soon be contacting customers who could be affected to discuss this option.

    Bounce Back Loan scheme top-ups

    If you didn’t borrow the maximum amount you're eligible for under the Bounce Back Loan Scheme, you may be able to apply for a top-up. This could enable you to increase your loan to 25% of the annual turnover stated in your original Bounce Bank Loan application, up to a maximum of £50,000.

    To apply for a top-up, please log in to Online Banking, go to ‘Product and services’ and select ‘Business loans’.


How to apply for Pay as you Grow
 

You can apply for the Pay as you Grow options if

  • You currently have a Bounce Back Loan with us
  • You’re at least nine months into your initial payment holiday – this’ll take effect when your payment holiday ends

You can apply for Pay as you Grow in Online Banking and the Barclays app. We'll send you a payment schedule outlining your options, around three months before your first payment is due – you don’t need to contact us.

Before applying, please check that your account details and contact information are up to date in Online Banking or the Barclays app. Please also note that

  • If you want Pay as you Grow to start from your next loan payment, you need to apply at least 20 days before that payment is due
  • You can look at the Pay as you Grow options on Online Banking and the Barclays app. To apply in Online Banking, you’ll need to use your desktop and the browser’s latest version. To apply in the Barclays app, please ensure you’ve downloaded the latest version
  • 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.

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.

Our Bounce Back Loan repayment calculator can help show you the impact of the Pay as you Grow options on your monthly payments and the overall amount you’ll have to pay. This information can be tailored to your individual circumstances. For more information, read our FAQs.

Registered for Online Banking?

The quickest way to apply is in Online Banking. Once logged in, you’ll see ‘Repayment options’ next to your Bounce Back Loan on the home page.

Applying in the Barclays app

You can also apply for Pay as you Grow in the Barclays app. It’s quick to register, so download the app now if you haven’t already. If you already have the app, make sure you’ve downloaded the latest version. 

FAQs

Scheme benefits and how to apply

  • FAQs for Pay as you Grow
  • FAQs for Bounce Back Loans

    Making repayments

    Top-ups for Bounce Back Loans

    Data privacy

Important information about your Bounce Back Loan

The provision of the BBLS Guarantee to Barclays does not imply any endorsement or warranty of Barclays by the Secretary of State for Business Energy and Industrial Strategy or the Government of the United Kingdom.

BBLS is 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

If you take out a Bounce Bank Loan with us, we will pay due regard to your information needs and we will provide information to you in a way which is clear, fair and not misleading.

We will provide you with the following information in relation to your Bounce Bank Loan

  • Timely, clear and adequate information that will help you to understand, if you fail to make a payment under your Bounce Bank Loan, the amount you have missed, what can be done to remedy it, the time scales that you need to remedy any missed payment and the impact (if any) on your future payments
  • If you default on your Bounce Bank Loan, we will provide you with information about any proposed action we might take in relation to your Bounce Bank Loan, before we take any such action
  • Regular information about the Bounce Bank Loan Scheme (on at least an annual basis), by way of a statement setting out details of payment transactions on your Bounce Bank Loan during the time since such information was provided (or the date that you received funds under the loan, if no information has been provided previously) and amounts outstanding under the Bounce Bank Loan and
  • Information on options available to you for help and assistance, including sources of free independent advice

We will also

  • Monitor payments that you make during the life of your Bounce Bank Loan and take action to help you where there are signs of actual or possible payment difficulties
  • If we identify or believe that you might be vulnerable, we will make adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan
  • If you default under your Bounce Back Loan, we will give you a reasonable period of time to remedy any breach and we will not treat the default as an event of default if you remedy the default within the period of time we give you
  • Not charge you any fees in relation to your Bounce Back Loan (including on default) or any default interest (except that we may continue to charge interest at the rate of 2.5% per annum if your Bounce Back Loan is not paid when due until such time as it is paid)
  • Allow you to pay all, or part of the Bounce Back Loan, early at any time. We will not charge you any fees for making an early payment

If you fail to make your payments under the Bounce Back Loan, we may

  • Charge interest on the outstanding amount, which will increase the amount you owe us
  • Require you to pay the loan (together with any interest you owe) immediately
  • Report you to credit reference agencies, which may negatively impact your credit score and make it harder to get credit in the future
  • Bring legal action to recover the loan and
  • Require you to pay any costs and expenses we in incur in recovering the loan

Loans made under the Bounce Back Loan Scheme are not subject to the usual consumer protections that may apply to other forms of business lending. As such, borrowers of Bounce Back Loans should be aware that they will not have the benefit of the protection and remedies that would otherwise be available to them under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

Complaints about our service

We want to hear from you if you feel unhappy about the service you have received from us. Letting us know your concerns gives us the opportunity to put matters right for you and improve service to all our customers. If you have reason to complain you may do so in person, in writing by post or email or by telephone. Details of our complaints handling procedures are available on request from any branch, your relationship team or servicing team, the Barclays Information Line on 0800 400 100* or www.barclays.co.uk

Complaints – Financial Ombudsman Service

If we are unable to resolve your complaint internally to your satisfaction, or if we have not resolved your complaint within 8 weeks from when you first let us know about your concerns and if you are an eligible complainant, you may be able to refer your complaint to The Financial Ombudsman Service, Exchange Tower, London E14 9SR (www.financial-ombudsman.org.uk). The Financial Ombudsman Service is an organisation set up by law to give consumers a free and independent service for resolving disputes with financial firms. Details of those who are eligible complainants can be obtained from the Financial Ombudsman Service.