Bounce Back Loan support

Is your business struggling to make repayments on a Bounce Back Loan (‘BBL’) that was taken out during the height of the Covid-19 pandemic? We can help you understand what options might be available to ease the strain. Speak to one of our experts and arrange a free initial consultation meeting.

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What should I do if I cannot repay my Bounce Back Loan?

If you are experiencing difficulty repaying your BBL it is important you seek expert help and advice especially if you believe you are going to have problems keeping up the repayments.   We can help you understand your position and explore possible options tailored to your individual circumstances.

It is important to also understand and consider whether you, as a director, could face any personal liability should your company be unable to keep up with the repayments.  Again we can provide expert guidance should you find yourself in this situation.

What are my options if I cannot repay my Bounce Back Loan?

If you are struggling to repay the BBL but you believe your company is viable and will be able to repay the loan in full, you should discuss this with the company’s bankers and see if they would be open to amending the repayment terms in line with the Government’s Pay as you Grow (‘PAYG’) scheme.

The PAYG scheme was designed to help companies who started to repay their BBL’s but are having difficulty meeting the monthly repayments. The scheme offers three main lifelines to companies:

  • Extending the term of the loan – BBLs can be extended from six years to ten years with the interest rate fixed at 2.5%. Whilst lengthening the term of the loan will lower the monthly repayments and ease the immediate burden more interest will be paid overall. Before extending your BBL you should evaluate the pros and cons of doing so as there’s likely to be significant financial implications.
  • Payment holiday – a six month payment holiday can be taken with no repayments due during this time – this can only be taken once during the term of the loan.
  • Short term reduced payment period – borrowers can opt to pay just the interest on the loan for a period of six months. Again, this will lower the monthly repayment amount during this time – this option can be taken three times during the term of the loan.

Hayley Watson


Norwich office contact details:

Cambridge office contact details:

Hayley started her career working at McTear Williams & Wood in 2005 and is a Licensed Insolvency Practitioner advising companies and individuals experiencing financial difficulties and works with a variety of stakeholders to establish and implement the best strategy for individuals and companies experiencing financial difficulties.

Hayley acts as an Insolvency Practitioner in all forms of corporate insolvency including creditors’ voluntary liquidation, compulsory liquidations, solvent members’ liquidations and company voluntary arrangements as well as advising individuals and acts as an insolvency practitioner for individual voluntary arrangements and bankruptcies.

Hayley qualified as a Licensed Insolvency Practitioner in 2019 and was appointed Director in March 2024. She is currently Chair of R3 Eastern Region committee and have over 19 years of experience in insolvency.

Can a company write off Bounce Back Loans?

Whilst companies remain active BBLs cannot be written off.  Under the terms of the loan agreement you may be able to re-negotiate payment terms with the lender.  If your company becomes insolvent and subsequently enters a formal insolvency process, only then could your BBL be written off.

Are you worried about potential BBL fraud or deemed misuse of the loan?

BBLs were made available to all SMEs in the UK across every sector and industry at the height of the Covid-19 pandemic as all sectors were experiencing different problems at the time.    BBL lending criteria was fairly broad and companies were told the loan could be used for a variety of purposes such as investing in the business, helping cashflow or providing working capital – in fact in any way which would provide an economic benefit to the business.  However, it was made very clear that a BBL was not intended for personal use.  By this we mean using it for personal purchases or transferring it to your personal account rather than taking a salary – although the loan could be used to pay staff salaries including directors’ salaries.

If you are worried that you cannot repay the BBL and may have misused it you should seek urgent professional advice.  Its far better to deal with such matters voluntarily rather than have an investigation forced upon you.  As licensed insolvency practitioners we can assess your situation and provide options for you and your company.

How can we help?

If your company is struggling with unmanagement debts, decreased cashlow or perhaps you need advice around BBL repayments or potential misue or fraud then call our specialist team who can assess your options and provide you with specific solutions for your situation.  Contact our team today.

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