Refinancing a Bounce Back Loan or Recovery Loan
Existing Bounce Back Loan facilities continue with the Pay As You Grow option. Some borrowers want to refinance into commercial lending, useful if you need additional capital, but worth modelling: the BBL's 2.5% fixed rate is below most commercial alternatives.
Who needs this
Businesses needing additional borrowing where the existing BBL constrains their lender appetite. Businesses where consolidating multiple facilities into one is cleaner. Businesses where the BBL exit terms (no early-repayment penalty) make refinance attractive.
Products that fit
- Mainstream term loan covering BBL settlement plus new ask
- Asset-backed refinance
- Government-backed Growth Guarantee Scheme borrowing
Top UK lenders
- Funding Circle
- Allica Bank for £150k+
- iwoca for working-capital top-up
- Growth Guarantee Scheme via accredited lenders
Watch outs
- Replacing 2.5% BBL with 9-12% commercial debt is usually a worse outcome unless additional capital is the actual need.
- Pay As You Grow extensions can be cheaper than refinancing.
Alternatives worth considering
- Pay As You Grow (extend BBL term, payment holiday, interest-only)
- Top-up borrowing alongside the BBL rather than replacing it
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Open our /get-quotes/ form →Last reviewed: 2026-04-26.