Close Menu
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Chancellor Outlines ‘Pay as You Grow’ Repayment System for Bounce Back Loans

By Jon Munnery
24 September 2020

Chancellor Rishi Sunak has outlined a new “flexible” repayment system that is to be introduced in relation to Bounce Back Loans provided to businesses hit by the coronavirus crisis.

The system is based on a “pay as you grow” policy, with the lifespan of credit deals able to be extended from six years up to 10 years upon request.

The Bounce Back Loans scheme was introduced earlier in the year with the government providing finance to companies that found themselves struggling urgently to maintain their cashflows as the whole country grappled with the realities of the unprecedented virus pandemic.

More than a million businesses are understood to have taken on Bounce Back Loans to help them stay afloat during tough times but concerns have been growing about what might happen when those loans need to start being repaid.

The worry has been that while government-backed loans proved enormously popular and hugely helpful to a great many businesses this year, it could be that lots of companies soon find themselves effectively unable to pay back what money they’ve borrowed.

Mr Sunak’s commitment to extending the scope of the loan terms and giving businesses more time to make their repayments may well represent much needed breathing space for companies that still find themselves battling to balance their books once the virus crisis is over.

It has also been announced that interest-only periods of six months and payment holidays are to be granted to businesses having obvious difficulty paying back their Bounce Back Loans.

Responding to the chancellor’s announcements, Adam Marshall from the British Chambers of Commerce said the government’s updated financial support policies will “help preserve livelihoods and ease the cash pressures faced by firms as they head into a challenging and uncertain winter”.

Figures released recently by the Office for National Statistics showed that roughly one in 10 companies across the UK are at either moderate or severe risk of becoming insolvent.

More than a million companies are known to have taken on Bounce Back Loans this year, with the amounts borrowed totalling around £38 billion.

Jonathan Munnery
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
Reintroduction of Winding Up Petitions ‘Will Add to Pressure on Struggling Firms’
The lifting of the ban on winding up petitions in the UK will add notably to the financial pressures being faced by struggling firms across the country.
Read more
Debenhams Departs UK High Streets After Liquidation Process
The department store chain Debenhams has closed its last remaining outlets in the UK after completing a process of liquidation.
Read more
Dam of Zombie Businesses ‘About to Break,’ Says Insolvency Expert
The dam preventing insolvent companies in the UK from heading out of business could be about to break, according to a leading corporate finance expert.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout
Logo Tma
Logo Business Recovery
Logo Cse
Logo Iip

Looking for immediate support?

Complete the below to get in touch

100% Free & Confidential Advice