If you cannot afford your Bounce Back Loan repayments, you are not alone. Thousands of UK directors are in the same position, worried about mounting arrears and pressure from lenders. The good news is that you have options to reduce the strain, protect yourself, and take control of the situation.
You may be facing:
- Falling or inconsistent income
- Rising costs from suppliers and utilities
- Other debts building alongside the loan
Missing repayments can feel overwhelming, but it is a common situation and there are structured ways forward.
What happens if you miss repayments
When a company misses its first repayment, the bank will usually issue reminders. Continued non-payment may lead to default, damaging your company’s credit profile.
The important point is that Bounce Back Loans were not secured with personal guarantees. If your company cannot pay, you are not personally liable by default. The debt usually stays with the company.
However, if the loan was misused or if your company continues trading while insolvent, risks can arise. In those cases, you may face claims ofwrongful tradingor even the risk of director’s disqualification. You can read more in our guide to Bounce Back Loans and personal liability.
Bounce Back Loan misuse and director risks
The loan was intended to cover trading costs like wages, rent, and suppliers. Using the loan for personal spending or speculative investments may be treated as misuse.
If misuse is suspected, the Insolvency Service can investigate. Outcomes could include:
- Being held personally liable for repayment
- Director’s disqualification for up to 15 years
- Restrictions on managing or forming companies
Most directors acted in good faith. If you are worried that spending might be questioned, seek advice early.
Options if your company can’t afford repayments
Falling behind does not mean the end of the road. Several formal processes exist to help manage debt and protect you as a director:
Company Voluntary Arrangement: A legal deal with creditors so you repay what the business can reasonably afford over time.
Administration: Gives temporary protection from creditors while an insolvency practitioner restructures or sells the company.
Creditors’ Voluntary Liquidation (CVL): If your company is insolvent, CVL allows you to close in an orderly way, writing off the Bounce Back Loan and other debts — if you’ve acted according to your director’s duties.
Each process has different outcomes. Choosing the right one depends on whether your business has a chance of recovery or needs to close.
HMRC debt vs Bounce Back Loan debt
Bounce Back Loans and HMRC arrears are treated differently:
- You could sometimes become personally liable for company debt to HMRC,especially if misconduct is proven.
- Bounce Back Loan debt usually remains with the company unless there has been misuse.
If your business owes both, one creditor (such as HMRC) may take action first. That is why early advice matters, to manage debts together rather than react to sudden enforcement.
Key takeaways on Bounce Back Loan repayments
- Many directors are struggling — you are not alone.
- Bounce Back Loan debt usually stays with the company, not you personally.
- Misuse or wrongful trading can lead to personal risk.
- Options such as CVA, Administration, or CVL provide structured ways forward.
- Early advice gives you the best chance to protect yourself.
We’re here to help if you can’t repay your Bounce Back Loan
If your company cannot manage its Bounce Back Loan repayments, professional support can reduce stress and give you clear next steps. We explain your options in plain English and help you choose the right path. Call our experts for free, confidential advice.
