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Bounce Back Loan Scheme

This supported UK businesses during coronavirus. The scheme is now closed to new applications, including Top-Ups. For more information see Bounce Back Loan Scheme.​

Pay As You Grow

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 have greater flexibility to repay their loans under Pay As You Grow.

Pay As You Grow enables businesses who are repaying their Bounce Back Loans to:


Request an extension of your loan term to ten years from six years, at the same fixed interest rate of 2.5%.


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.


Take a repayment holiday for up to six months. This option is available once during the term of your Bounce Back Loan.

You can use these options individually or in combination with each other, but you will pay more interest overall if you use one or more of these options, and the length of the loan will increase in line with any repayment holidays taken.

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.

Will using Pay As You Grow affect my ability to obtain finance in the future?

Using Pay As You Grow will not, in principle, affect your ability to obtain finance in the future. It is designed to alleviate your financial difficulty, even before it arises, by giving you flexibility in meeting your repayment obligations.

Using Pay As You Grow will not affect your credit rating, but it may affect lenders’ future creditworthiness assessments. For example, when considering a request for additional funding a lender will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan Scheme facility. It will also consider a business’s total debt exposure, which will again include the outstanding Bounce Back Loan Scheme facility.

Other business finance support options

In the first instance, if you have any concerns regarding repaying debt you should contact us. Visit our Financial help page to get in touch or to find links to further independent help and advice.

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:

Guide to business resilience


The British Business Bank’s Guide to Building Business Resilience is packed with impartial, practical, and actionable information to help smaller businesses manage costs, boost profitability, and increase resilience.

Guide to business resilience

The Finance Hub


Designed to simplify the complexities of business finance, the Finance Hub is a comprehensive online resource that empowers businesses of all sizes, from start-ups to established companies, offering a diverse range of information and resources to navigate the world of finance. It serves as a centralised hub where you can find independent and impartial guides, checklists, and articles, carefully curated to provide you with the knowledge needed to make informed financial decisions for your business.

The Finance Hub

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551