Can't Afford My Bounce Back Loan - What Are My Options?

If you're struggling with BBL repayments:

• Talk to your lender: Contact the bank before missing payments—many offer payment holidays or reduced payments
• Payment holiday: Some lenders allow temporary pauses in payments
• Extended term: Spreading payments over a longer period reduces monthly cost
• Reduced payment arrangement: Pay less than contractual amount temporarily
• Business restructuring: If company is viable, formal restructuring may help
• Company dissolution or liquidation: If the business can't be saved

Complete guide to BBL repayment options →

Current position on BBLs:

• No automatic write-off: The government has not announced any forgiveness programme
• 100% guarantee: Government guarantees 100% of the loan to banks, so banks pursue recovery
• Bank responsibility: Lenders handle repayments and recovery
• Negotiation with banks: You can negotiate repayment terms directly with your lender
• Monitor news: Government policy may change—stay informed

Don't wait hoping for forgiveness. Take action now to protect your business.

Yes, lenders can pursue legal action:

• County Court Judgment: Lender can obtain CCJ against the company
• Winding-up petition: For company loans, creditor can petition to wind up
• Personal guarantee: If you gave a personal guarantee, your personal assets are at risk
• Directors' liability: Directors may face action for wrongful trading if company insolvent
• Credit rating: Both company and personal credit will be severely affected

Act before this happens. Negotiate with your lender or seek professional help immediately.

Personal guarantee risks:

• Personal liability: Lender can pursue your personal assets to recover the debt
• Property at risk: Your home or other assets may be at stake
• Enforcement: Lenders can use enforcement agents to recover assets
• Credit impact: Personal credit rating severely affected
• Bankruptcy risk: If guarantee is called, personal bankruptcy may follow

Learn about personal guarantee protection →

Tips for negotiating with your lender:

• Be proactive: Contact them before you miss payments
• Have financials ready: Cash flow forecasts, accounts, bank statements
• Be realistic: Propose affordable amounts, not just what you'd like
• Get it in writing: Ensure any agreement is documented
• Ask for time: Request a short payment holiday to get back on track
• Escalate if needed: Ask to speak to manager or specialist team

We can help negotiate with lenders on your behalf. Get help with lender negotiations →

This is a serious decision that requires careful consideration:

• Consider rescue first: Is there a viable business that can be saved?
• Negotiate first: Explore restructuring and lender negotiations before liquidation
• Personal guarantee: Liquidation doesn't eliminate guarantee liability if you gave one
• Director implications: Liquidation can have serious personal consequences
• Jobs: Consider employees and their livelihoods
• Creditor impact: Liquidation means creditors receive less than in restructuring

Don't decide alone. Get professional advice on whether liquidation or rescue is right for you. Explore rescue options first →