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Originally announced by the Chancellor of the Exchequer in September 2020, Pay As You Grow (PAYG) will enable businesses who have started repaying 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.
This webinar is hosted by Martin McTague, FSB National Vice Chair Policy and Advocacy, FSB will also be joined by Richard Bearman – Managing Director, Small Business Lending and Gaynor Dykes - Senior Manager, Origination and Relationship Management, Guarantee and Wholesale Solutions