Frequently Asked Questions (FAQ’s)- For Customers with no Business Relationship Manager

Important: The FAQs below are for customers that do not have a dedicated Business Relationship Manager.

If you do have a dedicated Business Relationship Manager you can find FAQs for you by clicking here.

These FAQ’s should assist you in making a choice in either availing of a COVID-19 payment break for the second time or in guiding you through the options available to you if you are coming to the end of your second COVID-19 payment break or in guiding you through the options available to you if you are coming to the end of the Alternative Arrangement put in place after your second COVID-19 payment break expired.

 

Please note the term credit facilities and business loans are used interchangeably.

 

If you are coming to the end of your first payment break complete the online form ‘COVID-19 Credit facilities options form’ and choose ‘I am coming to the end of my first payment break-options’.

If you are coming to the end of your additional / second payment break complete the online form ‘COVID-19 Credit facilities options form’ by clicking this form it will bring you directly to the webform and available options for you under ‘I am coming to the end of my second payment break-options’.

If you are coming to the end of the alternative arrangement put in place after your second payment break expired you need to call our team on 1890 882961, or + 353 (0) 1 4883035 if you are calling from outside the Republic of Ireland.

  • 1. How do I apply for a COVID-19 payment break for my business loan?

    If you do not have a Business Relationship Manager, you can apply for a payment break by clicking here.

    Important Information: It is important to remember that a COVID-19 payment break may not be suitable for you. A payment break will only be suitable for you if the impacts on your business are temporary and if you meet our criteria which are set out below. Please note: The closing date for applying for a first Covid-19 Payment Break was 30th September 2020; after that date a first Covid-19 Payment Break is not available. If you have not availed of a Covid-19 Payment Break on or before 30th September 2020 then you will not be able to avail of the second Covid-19 Payment Break or the options available at the end of the second Covid-19 Payment Break. However if you feel you need support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    If you availed of your first Covid-19 Payment Break on or before 30th September 2020 then you can still apply for a second Covid-19 Payment Break or options available at the end of your second Covid-19 Payment Break after 30th September 2020.

    Also, if you are coming to the end of your first payment break and feel you may not be in a position to return to making payments on your business loan at the end of an additional payment break period, you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my first payment break’ and choose option 4.

    Likewise, if you availed of an additional payment break and you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the payment break you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my second payment break‘ and choose either option 2 or option 4, depending on what best suits your circumstances.

    If you availed of an additional alternative arrangement when the second payment break expired and you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the alternative arrangement please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    By taking a COVID-19 payment break or a further alternative arrangement when the second payment break expired, it will mean that the total cost of credit on your business loan will be higher than it would have been if you had not taken a payment break.

  • 2. Who can apply for a COVID-19 payment break?

    Businesses with Credit Facilities in the Republic of Ireland (ROI) who have experienced temporary impacts as a result of COVID-19 and who satisfy the criteria set out below can apply for a payment break on their business loan. Please note: The closing date for applying for a first Covid-19 Payment Break was 30th September 2020; after that date a first Covid-19 Payment Break is not available. If you have not availed of a Covid-19 Payment Break on or before 30th September 2020 then you will not be able to avail of the second Covid-19 Payment Break or the options available at the end of the second Covid-19 Payment Break. However if you feel you need support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    If you availed of your first Covid-19 Payment Break on or before 30th September 2020 then you can still apply for a second Covid-19 Payment Break or options available at the end of your second Covid-19 Payment Break after 30th September 2020.

    Important Information: It is important to remember that a COVID-19 payment break may not be suitable for you. A payment break will only be suitable for you if the impacts on your business are temporary and if you meet our criteria set out in question 3.

    Also, if you are coming to the end of your first payment break and feel you may not be in a position to return to making payments on your business loan at the end of an additional payment break period, you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my first payment break’ and choose option 4.

    Likewise, if you availed of an additional payment break and you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the payment break you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my second payment break‘ and choose either option 2 or option 4, depending on what best suits your circumstances.

    If you availed of an additional alternative arrangement when the second payment break expired and you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the alternative arrangement please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    By taking a COVID-19 payment break or a further alternative arrangement when the second payment break expired it will mean that the total cost of credit on your business loan will be higher than it would have been if you had not taken a payment break.

  • 3. Am I eligible for a payment break for my business loan?

    The closing date for applying for a first Covid-19 Payment Break was 30th September 2020; after that date a first Covid-19 Payment Break is not available. If you have not availed of a Covid-19 Payment Break on or before 30th September 2020 then you will not be able to avail of the second Covid-19 Payment Break or the options available at the end of the second Covid-19 Payment Break. However if you feel you need support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    If you availed of your first Covid-19 Payment Break on or before 30th September 2020 then you can still apply for a second Covid-19 Payment Break or options available at the end of your second Covid-19 Payment Break after 30th September 2020.

    Covid-19 payment breaks are available to business customers with Credit Facilities in ROI who are impacted by COVID19 and meet the following criteria:

    1. Prior to the 1st of March 2020 you were not in arrears on any loan or any other BOI business or personal loan.
    2. This is a precautionary request (no cashflow reduction has occurred but a safety net is required) or reflects a temporary reduction in your cashflow.
    3. You are not in financial difficulty now and/or were not concerned about your ability to meet future repayments before COVID-19. You are not in a forbearance arrangement with the Bank or if you are, you have met all the terms and conditions for a minimum of 12 months.
    4. Your loan must have been approved or drawn down prior to the 17th March to avail of the 3 month payment break.

    If you don’t meet the criteria set out above we may still be able to help you – please call us on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 4. Will a business loan payment break affect my credit record?

    Under the Credit Reporting Act 2013 we are required to provide personal and credit information for credit applications and credit agreements of €500 and above to the Central Credit Register (“CCR”). A payment break will not be marked as a missed payment and will not be reported as ‘Payments Past Due’. However, for the duration of the payment break, the ‘Date of Next Payment’ will be recorded as the date that your monthly payment ordinarily falls due on your Credit Facilities, although no payments are required during the payment break.

    You can insert a statement of 200 words or less relating to any information relating to your credit agreement/s on the CCR. Further information is available at www.centralcreditregister.ie.

    A payment break will not have an adverse impact on your Irish Credit Bureau record.

    However please note that if, following the expiry of your additional payment break, you do not return to paying full capital and interest and you avail of one of the short term alternative arrangements we will provide this financial solution as an alternative arrangement under the SME Regulations and it will be recorded with the Central Credit Register and the Irish Credit Bureau which may impact your ability to access credit in the future.

  • 5. What happens to my monthly payments during a payment break?

    Once the payment break has been put in place, the standing order on your business loan will be paused until the end of the payment break and you will not be required to make repayments on your Credit Facilities during the break period. Repayments to your business loan will automatically recommence on the next repayment date once the payment break period has ended if your business loan is paid from a Bank of Ireland paying account.

    If you are paying your business loan from a different Bank and you cancelled your Standing Order you will have to contact your paying Bank to set up a new standing order to your business loan.

  • 6. What happens at the end of my payment break?

    We will contact you in writing before your payment break expires to advise you of the next steps and your options in terms of how your business loan is repaid.

    You will need to follow the instructions in the letter that we send you promptly so that your preferred option is applied to your account before the end of your payment break period. If you are coming to the end of your second payment break we will also write to you about your options and you should follow the instructions outlined in the letter promptly.

    Important Information: If you feel as though you will not be in a position to start making repayments to your business loan towards the end of the payment break you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my first payment break’ and choose option 4.

    Likewise if you are coming to the end of your additional payment break and you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the payment break you should complete the online form ‘COVID-19 Credit facilities options form’ followed by ‘I am coming to the end of my second payment break‘ and choose either option 2 or option 4, depending on what best suits your circumstances.

    Otherwise contact 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 7. Can I make payments during the payment break period?

    During the payment break(s), you are not required to make any repayments (capital or interest) to the business loan. However, if you feel that you can make some level of repayments during the payment break(s) period you should. By doing so, it will mean that you will not pay as much interest as you would if you did not make any repayments at all.

    Important Information: There are no additional charges / costs to making full or partial payments during your payment breaks. If you wish to make full or partial payments during the payment break period, please call us on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 8. Will I pay more as a result of taking a COVID-19 payment break?

    Yes, by taking a COVID-19 payment break, you will pay more than if you had not taken a payment break at all. It is important to remember that interest will still be applied during the payment break period. As a result, your loan balance will increase by the amount of the interest and the 3 monthly payments that are not made during the payment break period. If you avail of a second payment break your loan balance will increase by the amount of the interest and the 6 monthly payments that are not made during the two payment break periods.

    However, by making some repayments to your business loan during the break(s), it will mean that you will not pay as much interest as you would if you did not make any payments at all.

    Important Information: There are no additional charges / costs to making full or partial payments during your payment breaks. If you wish to make full or partial payments during the payment break period, please call us on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 9. Some points to consider when considering about a COVID-19 payment break

    The key points that you need to bear in mind in relation to taking a COVID-19 business loan payment break are as follows:

    • The balance outstanding on your business loan will be higher at the end of the payment break(s) period than it was at the start of the payment break(s); we have included some examples below to illustrate the impact on your business loan when you take a payment break(s).
    • As a result of taking a payment break(s), you will pay more interest on your business loan than you would if you did not take a payment break(s)
    • You can make full or partial payments during the period, if you do so it will result in a lower cost of credit to you than if you did not make any repayments at all during the break(s) period.
    • If you are not confident that you will be in a position to make repayments at the end of the payment break period a payment break is not likely to be a suitable option for you/
    • If you take a payment break(s), you can choose to extend your business loan term by the amount of the payment break period or you can choose to repay your business loan within the original term by making increased monthly payments to your business loans.
    • If you have any doubts about taking a payment break, we strongly recommend you get independent legal or financial advice.
  • 10. Will my business loan interest rate change as a result of applying for a payment break?

    Your rate will not change due to availing of a payment break. If you have a fixed rate loan the term of the fixed rate period will be extended in line with the payment break(s) period. There are no additional charges either.

  • 11. What options do I have upon expiry of my first payment break?

    At the end of your first COVID-19 payment break we will write to you to provide you with the following options:

    Option 1: You do not need another payment break and you want to return to full capital and interest payments.

    You can do this by completing the online form ‘COVID-19 Credit Facilities options form’ and choosing ‘I am coming to the end of my first payment break’ and choose option 1.

    Interest will have continued to accrue over the payment break period which means you will have to pay more interest over the term of the business loan. If you choose this option, the term of your business loan will be extended by the period of the payment break. We have included some examples below which will help you to understand how much extra in additional interest you may have to pay under this option.

    Option 2: You are still experiencing a temporary reduction in your income and you want to apply for an additional three month COVID-19 payment break.

    You won’t have to make repayments to your business loan during this period; however, interest will continue to accrue on your loan which will mean that you will pay more than you would if you didn’t take a payment break. Before applying for an additional payment break, you should read the information in these FAQ’s carefully.

    To apply for an additional payment break please go to the online form ‘COVID-19 Credit Facilities options form’ and choose ‘I am coming to the end of my first payment break’ and choose option 2.

    Option 3: You do not need another payment break and you want us to amend the term of your Credit Facilities to clear the balance within the original term.

    By taking this option, you will need to make higher repayments each month over the term of the business loan so that the full balance is cleared within the original term of the loan, however, this option will result in a lower cost of credit to you than if you choose to pay over an extended term.

    You will be able to do this on the online form ‘COVID-19 Credit Facilities options form’. Please choose ‘I am coming to the end of my first payment break’ and choose option 3.

    Option 4: You are concerned that you may experience longer-term financial pressure and you would like to explore additional supports to help you to pay your Credit Facilities.

    You can speak to us about additional supports by completing the online form ‘COVID-19 Credit Facilities options form’ and choosing ‘I am coming to the end of my first payment break’ and choose option 4.

  • 12. What options do I have upon expiry of my second payment break.
    Prior to the end of your second COVID-19 payment break we will write to you to provide you with the following options:

    Option 1: Return to full capital and interest payments.

    If you would like to avail of this option then you do not need to complete the online webform, your credit facility will automatically revert to this option if you take no action.

    Interest will have continued to accrue over the two payment break periods which mean you will have to pay more interest over the term of the business loan. If you choose this option, the term of your business loan will be extended by the period of the payment breaks. We have included some examples below which will help you to understand how much extra in additional interest you may have to pay under this option.

    Option 2: 3 month payment moratorium with a 3 month term extension:

    You won’t have to make repayments to your business loan during the period of the 3 month moratorium and your business loan will be extended by 3 months; however, interest will continue to accrue on your loan during this period which will mean that you will pay more than you would if you didn’t take the moratorium. Before applying for this moratorium, you should read the information in these FAQ’s carefully.

    To apply for this option complete the online form ‘COVID-19 Credit Facilities options form’ and choose ‘I am coming to the end of my second payment break’ and choose option 2.

    Option 3: Increase your previous level of capital and interest payments so your credit facilities are repaid within the original term:

    By taking this option, you will need to make higher repayments each month over the term of the business loan so that the full balance is cleared within the original term of the loan, however, this option will result in a lower cost of credit to you than if you choose to pay over an extended term.

    You will be able to do this on the online form ‘COVID-19 Credit Facilities options form’. Please choose ‘I am coming to the end of my second payment break’ and choose option 3.

    Option 4: Further financial support is required: You are concerned that you may experience on-going financial pressure due to financial difficulties and you would like to explore additional supports to help you to pay your Credit Facilities with either another form of short-term support or longer-term financial support.

    You will be able to see the short-term supports available to you or you can speak to us about additional supports by completing the online form ‘COVID-19 Credit Facilities options form’ and choosing ‘I am coming to the end of my second payment break’ and choose option 4.

  • 13. How much does taking a COVID-19 Payment Break cost me?
    We have provided you with some information below to show you how much additional interest could be applied to your business loan as a result of taking a payment break. The information below is for illustrative purposes only and will vary on the amount of interest that will be applied to your business loan as a result of taking a payment break:

    The below examples represents what a three and six month payment break will cost you if you return to capital and interest payments after the payment break and we extend the term. There are also some examples that show what a three and six month payment break will cost you if you return to capital and interest and you do not extend the term.

    There is also an example below that provides you with the cost to you if at the end of your second payment break you choose the 3 month moratorium and 3 month extension option.

    The first 2 examples below illustrate what could be paid by you if you take a 3 month payment break on a loan of €50,000 depending on how you choose to repay your loan after the payment break ends, ie, either by repaying your loan with a term extension, or by repaying your loan within its original term.

    Illustrative example 1: You avail of a 3 month payment break and extend the term of the loan by 3 months.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €977.03 €58,621.64 €59,737.36 €1,115.72

    Important notice: The above example illustrates that for a loan with an outstanding balance of €50,000 you could have to repay an additional €1115.72 in interest as a direct result of taking a COVID-19 payment break and extending the term of your loan.

    By extending the term of the loan by 3 months to allow for the 3 month payment period, an additional payment will be needed to clear the extra interest that results from the payment break. By referring to the above illustrative example, the figure of €1,115.72 is representative of this additional payment.

     

    Illustrative example 2: You avail of a 3 month payment break and do not extend the loan by 3 months, instead you repay it within the original term of the loan.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break Difference in the monthly repayment due Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €1,037.18 €60.15 €58,621.64 €59,119.33 €497.69

    Important notice: The above example illustrates that for a loan with an outstanding balance of €50,000 you could have to repay an additional €497.69 in interest as a direct result of taking a COVID-19 payment break and repaying the loan within the original term.

    Result: For the above 2 examples you can see that repaying your loan within the original term will cost you less than if you choose to repay your loan over an extended term. The above examples demonstrate that you could pay an additional €618.03 in interest which is the difference between the cost of credit figures above.

     

     

    The next 2 examples below illustrates what could be paid by you if you take two consecutive 3 month payment breaks (6 month payment break in total) on a loan of €50,000 depending on how you choose to repay your loan after the payment break ends, ie, either by repaying your loan with a term extension, or by repaying your loan within its original term.

    Illustrative example 3: You avail of two consecutive 3 month payment breaks (6 month payment break in total) and extend the term of the loan by 6 months.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break ( if your loan term is extended ) Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €977.03 €58,621.64 €60,872.49 €2,250.85

    Important notice : The above example illustrates that for a loan with an outstanding balance of €50,000 you could have to repay an additional €2250.85 in interest as a direct result of taking a COVID-19 payment break and extending the term of your loan.

    By extending the term of the loan by 6 months (two consecutive 3 month payment breaks) to allow for the 6 month payment period, an additional payment will be needed to clear the extra interest that results from the payment break. By referring to the above illustrative example, the figure of €2,250.85 is representative of this additional payment.

     

    Illustrative example 4: You avail of two consecutive 3 month payment breaks (6 month payment break in total) and do not extend the loan by 6 months, instead you repay it within the original term of the loan.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break Difference in the monthly repayment due Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €1,104.78 €127.04 €58,621.64 €59,619.97 €998.33

    Important notice: The above example illustrates that for a loan with an outstanding balance of €50,000 you could have to repay an additional €998.33 in interest as a direct result of taking a COVID-19 payment break and repaying the loan within the original term.

    Result: For the above 2 examples you can see that repaying your loan within the original term will cost you less than if you choose to repay your loan over an extended term. The above examples demonstrate that you could pay an additional €1252.52 in interest which is the difference between the cost of credit figures above.

     

    The next 2 examples below illustrate what could be paid by you if you take a 3 month payment break on a loan of €1,000,000 depending on how you choose to repay your loan after the payment break ends, ie, either by repaying your loan with a term extension, or by repaying your loan within its original term.

    Illustrative example 5: You avail of a 3 month payment break and extend the term of the loan by 3 months.

     

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break ( if your loan term is extended ) Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 4.00% €1,000,000 €18,410.54 €18,410.54 €1,104,632.33 €1,116,825.27 €12,192.94

    Important notice: The above example illustrates that for a loan with an outstanding balance of €1,000,000 you could have to repay an additional €12,192.94 in interest as a direct result of taking a COVID-19 payment break and extending the term of your loan.

     

    By extending the term of the loan by 3 months to allow for the 3 month payment period, an additional payment will be needed to clear the extra interest that results from the payment break. By referring to the above illustrative example, the figure of €12,192.94 is representative of this additional payment.

     

    Illustrative example 6: You avail of a 3 month payment break and do not extend the loan by 3 months, instead you repay it within the original term of the loan.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break Difference in the monthly repayment due Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 4.00% €1,000,000 €18,410.54 €19,479.30 €1,068.76 €1,104,632.33 €1,110,320.27 €5,687.94

    Important notice: The above example illustrates that for a loan with an outstanding balance of €1,000,000 you could have to repay an additional €5,687.94 in interest as a direct result of taking a COVID-19 payment break and repaying the loan within the original term.

    Result: For the above 2 examples you can see that repaying your loan within the original term will cost you less than if you choose to repay your loan over an extended term. The above examples demonstrate that you could pay an additional €6505.00 in interest which is the difference between the cost of credit figures above.

     

    The next 2 examples below illustrates what could be paid by you if you take two consecutive 3 month payment breaks (6 month payment break in total) on a loan of €1,000,000 depending on how you choose to repay your loan after the payment break ends, ie, either by repaying your loan with a term extension, or by repaying your loan within its original term.

    Illustrative example 7: You avail of two consecutive 3 month payment breaks (6 month payment break in total) and extend the term of the loan by 6 months.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break ( if your loan term is extended ) Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 4.00% €1,000,000 €18,410.54 €18,410.54 €1,104,632.33 €1,129,149.19 €24,516.86

    Important notice: The above example illustrates that for a loan with an outstanding balance of €1,000,000 you could have to repay an additional €24,516.86 in interest as a direct result of taking a COVID-19 payment break and extending the term of your loan.

     

    By extending the term of the loan by 6 months (two consecutive 3 month payment breaks) to allow for the 6 month payment period, an additional payment will be needed to clear the extra interest that results from the payment break. By referring to the above illustrative example, the figure of €24,516.86 is representative of this additional payment.

     

    Illustrative example 8: You avail of two consecutive 3 month payment breaks (6 month payment break in total) and do not extend the loan by 6 months, instead you repay it within the original term of the loan.

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break Difference in the monthly repayment due Total amount to repay with no payment break Total amount to repay with a payment break Increase to the Cost of Credit
    60 months Capital & interest payments 4.00% €1,000,000 €18,410.54 €20,667.19 €2,256.65 €1,104,632.33 €1,116,028.30 €11,395.97

    Important notice: The above example illustrates that for a loan with an outstanding balance of €1,000,000 you could have to repay an additional €11,395.97 in interest as a direct result of taking a COVID-19 payment break and repaying the loan within the original term.

    Result: For the above 2 examples you can see that repaying your loan within the original term will cost you less than if you choose to repay your loan over an extended term. The above examples demonstrate that you could pay an additional €13,120.89 in interest which is the difference between the cost of credit figures above.

    This last example shows what could be paid by you if you take 2 3 month payment breaks, extend the term of your loan by the 2 payment breaks and then chose the 3 month moratorium and 3 month term extension option at the end of your second payment break.

    Illustrative Example 9: You availed of two consecutive 3 month payment breaks (6 month payment break in total) and extended the term of Credit Facilities by 6 months and you’ve now chosen option 2 which is a 3 month moratorium and 3 month term extension which will extend the term of the Credit Facilities by a further3 months, which means your loan will now be extended by 9 months overall (as available under Option 2)

    Term Remaining Interest Rate Outstanding loan balance Monthly repayments due prior the payment break Monthly repayments due after the payment break (if your loan term is extended) Total amount to repay with no payment break & moratorium Total amount to repay with a payment break & moratorium Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €977.03 €58,621.64 €62,026.02 €3,404.38

    Important notice: The above example illustrates that for a loan with an outstanding balance of €50,000 you could have to repay an additional €3,404.38 in interest as a direct result of taking COVID-19 payment breaks and the moratorium and extending the term of your loan.

    By extending the term of the loan by 9 months (two consecutive 3 month payment breaks and the 3 month moratorium) to allow for the 9 month payment period, an additional payment will be needed to clear the extra interest that results from the payment breaks and moratorium. By referring to the above illustrative example, the figure of €3,404.38 is representative of this additional payment.

    Illustrative example 10: You avail of two consecutive 3 month payment breaks (6 month payment break in total) plus a 3 month moratorium and extend the term of the Credit Facilities by 9 months.

    Term Remaining Interest Rate Outstanding Credit Facilities balance Monthly repayments due prior to the payment breaks and moratorium Monthly repayments due after the payment breaks and moratorium (if your Credit Facilities term is extended) Total amount to repay with no payment breaks or moratorium Total amount to repay with payment breaks and moratorium Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €977.03 €58,621.64 €62,026.02 €3,404.38

    Important notice: The above example illustrates that for Credit Facilities with an outstanding balance of €50,000 you could have to repay an additional €3,404.38 in interest as a direct result of taking two COVID-19 payment breaks and a moratorium and extending the term of your Credit Facilities.

    By extending the term of the Credit Facilities by 9 months (two consecutive 3 month payment breaks plus a 3 month moratorium) to allow for the 9 month payment period, an additional payment will be needed to clear the extra interest that results from the payment breaks and the moratorium. By referring to the above illustrative example, the figure of €3,404.38 is representative of this additional payment.

    Illustrative example 11: You avail of two consecutive 3 month payment breaks (6 month payment break in total) plus a 3 month moratorium and do not extend the Credit Facilities by 9 months, instead you repay within the original term of the Credit Facilities.

    Term Remaining Interest Rate Outstanding Credit Facilities balance Monthly repayments due prior to the payment breaks and moratorium Monthly repayments due after the payment breaks and moratorium (if your Credit Facilities term is extended) Difference in the monthly repayment due Total amount to repay with no payment breaks or moratorium Total amount to repay with payment breaks and moratorium Increase to the Cost of Credit
    60 months Capital & interest payments 6.48% €50,000 €977.03 €1,178.89 €201.87 €58,621.64 €60,123.56 €1,501.92

    Important notice: The above example illustrates that for Credit Facilities with an outstanding balance of €50,000 you could have to repay an additional €1,501.92 in interest as a direct result of taking two COVID-19 payment breaks and a moratorium and repaying the Credit Facilities within the original term.

    In summary from the illustrative examples #10 & #11 you can see that repaying your Credit Facilities within the original term will cost you less than if you choose to repay your Credit Facilities over an extended term. The above examples demonstrate that you could pay an additional €1,902.46 in interest which is the difference between the cost of credit figures above.

  • 14. How long will it take to put the payment break in place after I apply?

    We are dealing with unprecedented demand for payment breaks and we are processing breaks as quickly as possible. When you apply online, you will receive a confirmation SMS to confirm that we have received your application.

    If you are availing of a payment break for the second time and a standing order/payment has been taken from your current account in the intervening period, we will back-date your payment break by paying the money back to your current account. You won’t have to do anything.

    If you requested a first time payment break it would have commenced from the next due payment date after we processed the payment request. For example if you apply to us on 20th June and your repayment is on 28th June, we will apply your payment break from 28th July to 28th September and your payments will commence on 28th October as we would not have sufficient time to put a payment break in place for 28th June repayment. We will endeavour to write to you within 5 days of processing your payment break, however we apologise if we are a little later due to high volumes of applications from our customers.

    Please note: The closing date for applying for a first Covid-19 Payment Break was 30th September 2020; after that date a first Covid-19 Payment Break is not available. If you have not availed of a Covid-19 Payment Break on or before 30th September 2020 then you will not be able to avail of the second Covid-19 Payment Break or the options available at the end of the second Covid-19 Payment Break. However if you feel you need support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

    If you availed of your first Covid-19 Payment Break on or before 30th September 2020 then you can still apply for a second Covid-19 Payment Break or options available at the end of your second Covid-19 Payment Break after 30th September 2020.

    Once we have verified your application, we will send you an email via DocuSign requesting you and any signatories to the account to sign to accept your payment break. On receipt of your returned document we will put your payment break in place within 2-3 days of receipt of your returned correspondence.

  • 15. Will I be told when the payment break has been applied to my business loan?

    When you apply for a payment break you will receive an emailed letter which will be in the form of a DocuSign email, we will ask you to confirm your acceptance of the terms of the emailed letter by providing your electronic signature to acceptance page as requested.

  • 16. If I have more than 1 loan will I need to apply for each payment break separately?

    You can apply for up to 3 payment breaks on each application form, but you will need to give us the details of each business loan that you are applying for a payment break on.

  • 17. What can I do if I am still unsure what to do about my payment break options?
    Please use the ‘COVID-19 Credit facilities options form’ to choose your relevant option. If you are still unclear about what option to choose please call us on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 18. I am reaching the end of my additional payment break; can I avail of a third payment break?

    No. A further COVID-19 payment break is not available. However, we encourage you to consider your options which will be sent to you before the end of your additional payment break. It is important to get in touch as soon as possible so that the review can be completed prior to the expiry of your additional payment break if you are availing of this option.

    Please note if you experience longer term financial difficulty and you avail of additional measures with us to help you manage your Credit Facilities payment, we will treat this assistance as forbearance (i.e. a special arrangement) and it will be recorded under your credit records as such with the Central Credit Register and the Irish Credit Bureau.

  • 19. What options do I have upon expiry of my additional payment break?

    Option 1 – Return to your previous level of capital and interest payments: You do not need any further assistance and you want to return to full capital and interest payments.

    Option 2 -3 month payment moratorium with a 3 month term extension: You require further short-term assistance and would like to request a 3 month moratorium which will also include extending the term of your loan by 3 months before returning to full capital and interest payments in line with what you would have been paying prior to taking your Covid-19 payment breaks.

    Option 3 – Increase your previous level of capital and interest payments to repay your Credit Facilities within the original term: You do not need any further assistance and you want us to amend the term and payment amount of your Credit Facilities to clear the balance within the original term of the loan.

    Option 4 – You require another form of short-term support or you’re concerned that you may experience longer term financial pressure and you would like to explore additional supports to help you to pay your Credit Facilities. Under this option, a review of your circumstances and additional information may be required.

  • 20. What actions are required by me prior to the expiry of my additional payment break?

    Please review the options letter you received, when you are satisfied with the option that best suits your needs please complete the online webform choose your option and complete all the relevant details. This action should be completed as soon as possible following receipt of the options letter that we will send you to allow the option that has been chosen by you to be applied before the end of the additional payment break period.

  • 21. What happens if I do not respond at the end of my additional payment break?

    If you do not take any action on receipt of the letter that we will send to you before the end of your additional payment break your normal capital and interest payments to your Credit Facilities will automatically resume on the date of expiry and the term of your Credit Facilities will be extended.

  • 22. What should I do if I have life assurance or payment protection cover in respect of the Credit Facilities?

    If you have life assurance or payment protection cover in respect of the Credit Facilities, you should review it in line with the additional payment break that you have taken so as to ensure that you continue to have the appropriate cover in place. An additional payment break could mean that your cover will need to be adjusted so as to ensure that you continue to have enough cover in place for the extended term.

  • 23. Will my loan be in arrears as a result of availing of payment breaks?

    Your Credit Facilities would not have gone into arrears as a result of availing of the initial or additional Covid-19 payment breaks. If you were in arrears already before taking the initial or additional payment breaks, these arrears will not have increased as a result of availing of the initial and additional payment breaks.

  • 24. What if I cannot afford to resume payments?

    If you cannot afford to resume payments we would encourage you to explore option 4 (Further financial support is required) If you are concerned that you may experience longer-term financial pressure and you would like to explore additional supports to help you to pay your Credit Facilities. This may be most suitable for you if you are concerned that the impact on your finances of COVID-19 could be longer-lasting or that you may not be able to meet full capital and interest payments on your Credit Facilities after your additional payment break ends. Under this option, a review of your circumstances and additional information may be required.

  • 25. What is the Cost of Credit of my Payment Break?

    By availing of the Payment Break(s), this means that you will have to pay more interest over the period of your loan than would have been the case if you had not taken any Payment Break(s). FAQ 13 above outlines some illustrative examples of the cost of credit which you might find helpful; we would also encourage you to use the Payment Break Calculator which you can access by clicking here. Alternatively you can also contact us on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays) to enquire about your Cost of Credit and the impact a Payment Break will have on the Cost of Credit on your loan(s).

  • 26. What do Payment Breaks mean for my TRS (Tax Relief at Source):

    If you are eligible to receive Tax Relief at Source, your TRS is calculated based on the amount of interest you pay. For months where no interest is paid on the mortgage loan, there will be no related TRS payments. As TRS payments operate one month behind, you should see the TRS impact in the subsequent month. For example, if you don’t make mortgage repayments for the three months of April, May and June, you will not receive TRS payments in May, June and July.

  • 27. What is a cooling off Period?

    If you would like to change your mind and not proceed with the additional payment break after you have accepted it, please contact us within 14 days of the acceptance. It is important to remember that after this cooling off period has ended, you can still contact us to make payments to your loan during the payment break period on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am-5pm Monday to Friday, excluding bank holidays)

  • 28. Since level 5 has been applied across the country for 6 weeks from 21 October, are the banks reintroducing COVID-19 payment breaks?

    Banks, including Bank of Ireland, are following the industry guidance in relation to providing assistance to Business customers who may be experiencing difficulty with their credit facility repayments due to the additional measures introduced by the Irish Government to contain the spread of COVID-19. If you feel you may have difficulty with your credit facility repayments we encourage you to contact us as soon as possible and we will explore options to help you manage your repayments depending on your circumstances.

    Should you require additional support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

  • 29. If I took one COVID-19 payment break and returned to making repayments for a time, can I still apply for the second COVID-19 payment break now?

    Under guidance from the European Banking Authority and the Central Bank of Ireland, customers who availed of a COVID-19 payment break had the option to extend their payment break for an additional 3 months should they need it. However, the option of another COVID-19 payment break is no longer available.

    If you experience difficulty with your credit facility repayments due to the additional measures introduced by the Irish Government to contain the spread of COVID-19 we encourage you to contact us and we will explore options to help you manage your credit facility repayments depending on your circumstances.

    Should you require additional support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

  • 30. If I availed of 2 COVID-19 payment breaks (6 months total) can I apply for another 3 months (9 months) total?

    While we are aware that some customers may be experiencing additional financial difficulty due to the new restrictions introduced by the Government on 21 October, a further extension to the COVID-19 payment break is not available.

    However should you require additional support due to the new COVID-19 restrictions, please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

  • 31. If I avail of an alternative arrangement after my second payment break expires will this affect my credit record?

    Please note that if, following the expiry of your additional payment break, you do not return to paying full capital and interest and you avail of one of the short term alternative arrangements available we will provide this as an alternative arrangement under the SME Regulations and it will be recorded with the Central Credit Register and the Irish Credit Bureau which may impact your ability to access credit in the future.

  • 32. If I availed of an Alternative Arrangement after my second payment break matured what happens at the end of this alternative arrangement?

    We will contact you before your alternative arrangement expires to advise you of the next steps and your options in terms of how your business loan is repaid.
    If you feel you may not be in a position to return to making full capital & interest payments on your business loan at the end of the alternative arrangement you should contact our team on 1890 882 961 or 353 (0) 1 4883035 if calling from outside ROI (lines open 9am-5pm Monday to Friday, excluding bank holidays).

  • 33. If I availed of an alternative arrangement after my second payment break matured what are my options on the expiry of this alternative arrangement?

    Option 1 – Return to your previous level of capital and interest payments: You do not need any further assistance and you want to return to full capital and interest payments.

    Option 2 – Increase your previous level of capital and interest payments to repay your Credit Facilities within the original term: You do not need any further assistance and you want us to amend the term and payment amount of your Credit Facilities to clear the balance within the original term of the loan.

    Option 3 – You are concerned that you may experience longer term financial difficulty and you would like to explore additional arrangements to help you to pay your Credit Facilities. Under this option, a review of your circumstances and additional information may be required.

  • 34. What happens if I do not respond at the end of the Alternative Arrangement put in place at the end of my second COVID-19 payment break?

    If you do not take any action on receipt of the letter that we will send to you before the end of the alternative arrangement put in place following the expiry of your additional payment break your normal capital and interest payments to your Credit Facilities will automatically resume on the date of expiry.

  • 35. If I availed of an alternative arrangement after my second payment break expires and I seek another alternative arrangement rather than return to paying full Capital and Interest will this affect my credit record?

    Please note that if, following the expiry of the alternative arrangement put in place following the expiry of your additional payment break, you avail of a further alternative arrangement rather than return to paying full capital and interest we will provide the details of this as an alternative arrangement under the SME Regulations and it will be recorded with the Central Credit Register and the Irish Credit Bureau which may impact your ability to access credit in the future.

  • 36. What are the options for me now if I experience difficulty with my credit facility repayments due to COVID-19?

    We have a range of supports available to help customers who may experience further financial difficulty due to the COVID-19 national health emergency. The earlier we know about any concern you may have, the sooner we can work together to identify the best solution to get you back in control of your finances.

    If you feel you need support please contact us directly on 1890 882 961 or 353 (0) 1 4883035 (lines open 9am – 5pm Monday to Friday excluding Bank Holidays) and we will be able discuss other supports that may be available to you.

Bank of Ireland is regulated by the Central Bank of Ireland