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Surely there is no point in repaying the bounceback loan early?



Active Member
The bounceback loan announced by the UK government is free for the first year and fixed at 2.5% for the next five years. Surely there is no point in repaying this loan early even if you don’t use the funds in the short term?


Even if you don't use the funds in the first 12 months, the free period, it does not make sense to repay this early. For example, if you needed any funds over the full six year period you will pay a lot more than 2.5% in the commercial market. If you can't make a return on debt costing 2.5% interest then you really need to wonder about your business acumen.

Alexander Blake

New Member
This bounceback loan announced by the UK government was very helpful to my business, I have had earlier some problems with finances and took several loans from these guys they have no hidden fees and very low-interest rate these loans saved my business, I have applied for a 5000$ in the evening and next day they were on my account. I am really thankful to the UK government for this loan, I see no reason for repaying it early.


New Member
I'm an expert on SME finance (particularly the alternative finance market) and 2.5% p/a over a 6 year term is a really good deal - especially with no PG and no security on the business.

If you guys are interested I wrote a blog on BBLS which you can see here:

In terms of how these rates sit alongside the "usual" market in terms of finance you can see (another) thing I made which is a comparison table for a bunch of lenders:

Hope this is useful!