Recognising the importance of cash flow for businesses into 2021 the Chancellor, Rishi Sunak, announced changes to the government backed loan schemes, so as to provide more flexibility to business.
Whilst there have been name changes to Pay as You Grow, the fundamental points are providing greater flexibility by increasing repayment terms from 6 years to 10 years with the Government backing, allowing businesses to make interest-only payments and taking payment holidays of up to 6 months as necessary.
The deadline for the schemes has also been extended until the end of November and work has started, behind the scenes, on creating new schemes to be announced in the New year. Rob Beale commented: “Cash flow continues to be the life blood for businesses during the current difficult times and the extension of terms and ability to take payment holidays, should help those businesses in the short term”.