2 min read
How an existing Bounce Back Loan is viewed
A Bounce Back Loan is a normal company liability as far as new lending is concerned. Having one does not disqualify you — many trading companies still carry a BBL and borrow successfully. The lender's focus is serviceability: can the business cover the new repayment alongside the BBL and its other commitments, from realistic income? A company servicing its BBL on time is demonstrating exactly the repayment discipline a lender wants to see.
What raises questions is not the BBL's existence but signs of distress around it — missed BBL payments, a 'Pay As You Grow' deferral taken because of hardship, or borrowing simply to keep up with existing debt. Lending to repay other lending rarely solves the underlying issue.
What affects the decision
Be upfront about the BBL and any other finance; it will show on your company's records, and transparency strengthens an application rather than weakening it. The stronger your trading, receivables and repayment record, the more comfortably new finance fits alongside the BBL. The key question to answer for yourself first is whether the new borrowing funds growth or genuine working capital — not whether it props up a structural shortfall.
How Credicorp finance fits
Credicorp assesses the company's ability to repay, lends to the limited company with no personal guarantee, and factors existing commitments like a BBL into affordability. A short-term business loan or business credit facility can sit alongside a BBL where the numbers work. You can apply online as a company.
Frequently asked questions
Does having a Bounce Back Loan hurt my chances of new finance?
Not on its own. A BBL serviced on time can actually evidence good repayment behaviour. What matters is whether the company can afford the new repayments on top of the BBL. Missed BBL payments or borrowing to cover existing debt are what weaken an application.
Should I tell the lender about my Bounce Back Loan?
Yes — always. It appears on your company's records, and disclosing it (and any other finance) is expected. Transparency about your commitments helps the lender size finance you can actually afford.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.