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
Insolvency & Restructuring Expert
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
Voluntary Liquidation Cases Up 9% On Last Year
The number of voluntary liquidation cases in England and Wales were up by 9 per cent in March as compared to the same month of last year.
Read more
Fashion Retailer Dress Me Online Entered into Liquidation
A fashion retail brand known as Dress Me Online has been entered into liquidation after struggling to cope with an array of financial pressures in recent months.
Read more
Soaring Cost of Steel Helps Push Engineering Firm into Liquidation
Steep increases to the cost of steel in recent months have helped force a Gloucestershire-based engineering firm into liquidation.
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

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY