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.

Your other repayment options:

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.

Pay As You Grow options will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first approved.

Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall.

The options available to you when you are due to make your first payment after 12 months are as follows:

1. If you expect to be in a better position to repay in the future:

1. You could 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.

Or

2. You could take a payment holiday for six months.
   • This option is available once during the term of your Bounce Back Loan.

2. If you’re only able to repay a smaller amount:

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

If you’re considering this option you should think carefully about your ability to repay 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.

Please note for all three options that the total amount you owe will go up. This is because your interest costs increase as you’re repaying your loan over a longer period.

You can use options 1 and 2 together if you need to.

We’re here to help

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

However if you’re worried about your finances, please contact us on 0800 756 0800.

You can also contact the following organisations for free advice and there is further information in the UK Finance leaflet on Dealing With Debt.

Other business finance support options

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.

Reminder of your Bounce Back Loan terms and conditions

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.

• We will monitor your repayment record during the life of the loan and take appropriate action where there are signs of actual or possible repayment difficulties in accordance with our obligations under our agreement with the government for participating in this Scheme.
• Where we identify a borrower as vulnerable or have reason to believe that a borrower may be vulnerable, appropriate adjustments may be made to ensure that the borrower’s circumstances are accommodated throughout the duration of the loan.
• Upon default by a borrower, we agree that we will give the borrower a reasonable period to remedy any breach and will not treat the same as an event of default if it is remedied to our satisfaction by the borrower within this period.
• We will not require the borrower to pay any fees charged by us of any description (including on default) or any default interest (except that we will continue to charge interest at 2.5% per annum if the loan is not repaid when due until such time as it is repaid).
• We will pay due regard to your information needs and provide information to you in a way which is clear, fair and not misleading.
• We will provide each borrower with the following information in relation to their loan during the term of the loan
  1. timely and clear information that enables a borrower to understand that, where they fail to make payments under the loan, the amount missed, what can be done to remedy the missed payments, in what timescales, and the impact (if any) on future repayments;
  2. upon default by the borrower, information about any proposed action we may take in respect of the loan, prior to us taking such action;
  3. regular information about the loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the loan during the period since such information was provided and amounts outstanding under the loan; and
  4. information on options available to the borrower for help and assistance, including sources of free independent advice.
• You are not required to open or maintain a Business Current Account with Yorkshire Bank in order to obtain or manage a business loan or a business deposit account.
• You are able to switch your Business Current Account to another provider while retaining your business loan with Yorkshire Bank.
• You are able to use another provider to manage your business banking while retaining your business loan with Yorkshire Bank.
• You can visit our Business Current Account comparison page to find out more about Business Current Accounts available at Yorkshire Bank before choosing which type of account you wish to open. If you need more information on a fee-free loan servicing account, you can contact us on 0800 756 0800.
• You can apply for a Bounce Back Loan by using a fee-free loan servicing account. A fee-free loan servicing account is not a Business Current Account.
• The BBLS guarantee is provided to your lender and not to you. You remain responsible for repaying the whole of this loan at all times and if you fail to do so this may negatively impact your credit score or rating with credit rating agencies.

Complaints

• We are committed to providing you with the best possible service. Although most of our customers are happy with the service, they receive from us, we know that sometimes we don’t get it right first time. We do take complaints very seriously and always apologise for mistakes or instances when customer service does not meet our high standards.
• The Financial Ombudsman Service is an independent organisation which helps to resolve complaints that customers and financial institutions haven’t been able to resolve themselves. If you are not satisfied with our response, or if we’ve been unable to resolve your complaint within eight weeks, 15 calendar days for payment related complaints, you can refer the matter to them.

Further information can be found online on Managing Your Complaints

You can also download a copy of our Complaint Handling PDF