HSBC bounce back loan repayment extension in the United Kingdom

HSBC bounce back loan repayment extension in the United Kingdom A year on from the launch of the Bounce Back Loan Scheme (BBLS), almost one in three (29%) small and medium-sized businesses who took out a loan are not aware of the Pay As You Grow (PAYG) options which provide more time and flexibility to make repayments, according to research by Lloyds Bank.

HSBC provided Bounce Back Loans to new and existing business customers when they were first introduced in March 2020. These were offered with a fixed rate of interest over six-year terms. While no repayments were due for the first year, companies are now having to find the money to service the monthly cost of their Bounce Back Loans.

If you are having problems finding the money to pay your Bounce Back Loan, a HSBC Bounce Back Loan extension could be a way to reduce the monthly cost to a more sustainable and manageable level. As part of the Pay As You Grow (PAYG) Scheme, Bounce Back Loans taken out with HSBC can now be paid over 10 years rather than the original six-year agreement. This will reduce the monthly payment amount, however, as the loan is being taken out over a longer period, more interest will be payable over the life of the loan.

HSBC did offer Bounce Back Loan top ups, although this option ended on 31 March 2021; however, you can still choose to delay your HSBC Bounce Back Loan by taking a six-month payment holiday. Interest will continue to build during any repayment holiday so you will need to factor this into future.

If you can’t pay your HSBC Bounce Back Loan, this could hint at deeper financial problems with your limited company. If you are struggling with the monthly cost of your HSBC Bounce Back Loan, as well as dealing with other creditors, a licensed insolvency practitioner is able to give you the help you need. They can help you understand the options available and what each solution will mean for you, your company, and your Bounce Back Loan.