Bounce Back Loan Scheme

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.

Originally announced by the Chancellor of the Exchequer in September 2020, Pay As You Grow (PAYG) will enable businesses who have started repaying, or are about to start paying their Bounce Back Loans to:

• request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
• reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
• take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other. 

Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

If you wish to utilise any of these options, email collections@capitalontap.com with the subject line 'PAYG'. Please note, you will need to provide at least 5 business days notice of any PAYG option you wish to take to allow enough time for Capital on Tap to make the changes to your account.

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.

Further information on the scheme can be found in the video below or on the British Business Bank's website.

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.

Log in to your online portal, and head to the My Details section to obtain your original Bounce Back Loan documentation.