Bounce Back Loans
Bounce Back Loans: What to Do if Your Limited Company is Still Repaying a Bounce Back Loan (2025 Guide)
Expert Help for Directors who Need Bounce Back Loan Advice or Company Liquidation Support
Bounce Back Loans were a lifeline for thousands of UK limited companies during the pandemic but years later, many directors are still struggling with repayments. If your business is under pressure and you’re unsure what options you have, this guide explains everything clearly.
Whether you want to keep trading, restructure your debts or close the company, it’s important to know what support is available and how the rules protect you as a director.
Why so Many Companies are Still Struggling with Bounce Back Loan Repayments
Although Bounce Back Loans were designed to be easy to access, repaying them hasn’t been as simple. Many businesses are dealing with:
Declining revenue or rising costs
HMRC arrears alongside Bounce Back Loan repayments
Increased cost of living pressure on cashflow
The end of payment holidays and reduced repayment options
If your company is facing similar problems, you are far from alone, and crucially, there are options.
If you’re looking for help with Bounce Back Loan repayments, expert advice is available
Can You Close a Limited Company that Still Owes a Bounce Back Loan?
Yes. A limited company can be closed even if the Bounce Back Loan is not fully repaid but the process depends on the company’s financial position.
1. If the company is insolvent:
You can use a Creditors’ Voluntary Liquidation (CVL).
In a CVL:
The remaining Bounce Back Loan debt is written off with other unsecured debts.
The lender claims under the Government guarantee.
Directors are not personally liable for the Bounce Back Loan unless there was fraud or misuse.
This is the most common route for companies that can’t afford repayments.
We regularly assist directors with company liquidation involving Bounce Back Loans, ensuring the process is compliant and stress-free.
2. If the company is still solvent:
You could close using a Members’ Voluntary Liquidation (MVL) or consider striking off, however, outstanding Bounce Back Loans normally prevent a straightforward strike-off, as lenders and HMRC will object.
If you’re unsure whether your company is solvent or insolvent, we can help assess this.
What if You Want to Keep Trading Instead of Closing?
If the business is still viable but the Bounce Back Loan repayments are causing pressure, you may have other options:
✔ Repayment flexibility (“Pay As You Grow”):
You may be able to:
Extend the loan term up to 10 years
Take a 6-month repayment holiday
Move to interest-only payments for 6 months (up to 3 times)
✔ Company Voluntary Arrangement (CVA):
If you have wider company debt, a CVA can:
Reduce monthly payments
Freeze interest
Allow the business to continue trading
✔ Business restructuring or refinancing:
Useful if the business is fundamentally profitable but cash-tight.
Are Directors Personally Liable for Bounce Back Loans?
For most directors, no; Bounce Back Loans did not require personal guarantees.
However, you may face personal risk if:
The loan was used for personal benefit
False information was given on the application
The company was already insolvent at the time of borrowing
If you used the Bounce Back Loan properly for legitimate business purposes, you should be protected.
How to Know When It’s Time to Close the Company
It may be time to discuss closure if:
You can’t afford Bounce Back Loan repayments
You’re using personal money to keep the business alive
You’re falling behind on HMRC liabilities
Suppliers are not being paid
Cashflow issues are constant and unmanageable
Speaking to a specialist early helps protect you from wrongful trading risks.
How We Help Directors with Bounce Back Loan Problems.
Our Company Closure Support service helps limited company directors find Bounce Back Loan help and advice, understand all their options clearly and make the right decision. We can:
We can:
Review your financial situation to help identify possible routes
Help you understand your responsibilities as a director
Assist with organising information for discussions with lenders and creditors
If your limited company is still repaying a Bounce Back Loan and you’re unsure of the next step, we can guide you.
Get Expert Advice Today
If you’d like tailored guidance on your Bounce Back Loan, repayments or closing your company, we offer confidential, no-obligation advice.