Bounce Back Loan Support

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The Bounce Back Loan scheme was introduced in March 2020, with the aim of providing businesses easy access to emergency funding during the first wave of the Covid-19 pandemic. Over a million companies took advantage of the scheme in the first four months alone, with this number growing to over two million by the time applications closed to new borrowers. This has equated to more than £47.36bn worth of Bounce Back Loans which now need to be repaid.

 

 

 

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While Bounce Back Loans were a lifeline to many companies at the height of the Covid-19 pandemic, they are now being increasingly seen as a source of financial frustration as repayments add yet another monthly outgoing to already stretched cash flows.

If you are experiencing difficulty when it comes to repaying your Bounce Back Loan, rest assured, you are far from alone. In fact, there are fears that half of those who took out these loans will be unable to repay them.

It is vitally important that you seek expert help and advice if you believe you are going to have problems keeping up with the repayments on your Bounce Back Loan. Real Business Rescue are here to help you understand your options and plot a route forward.

In the meantime, our Bounce Back Loan Support Hub is packed full of helpful articles to help you understand your position when it comes to your outstanding Bounce Back Loan:

• What is a Bounce Back Loan? – If you have taken out this type of borrowing, it is important to understanding exactly what a Bounce Back Loan is and what they were designed to achieve.
• Bounce Back Loans and personal liability - It is important to understand whether you could face personal liability for the remainder of your Bounce Back Loan should your company be unable to keep up with the agreed repayments.
• Problems repaying Bounce Back Loan – If your company is finding itself in an increasingly distressed state, you now find yourself unable to repay your Bounce Back Loan. If you find your company in this position, it is vital you seek expert help and advice as a matter of urgency. It may be possible to renegotiate the terms of the loan or enter into negotiations with other creditors to free up the necessary cash flow.
• Write off Bounce Back Loan – We are speaking to an increasing amount of company directors wanting to know whether they can write of a Bounce Back Loan if they know their company is simply unable to repay it in full.
• Using Bounce Back Loan to pay tax bills – Bounce Back Loans were introduced in order to help businesses weather the storm of the Covid-19 pandemic. Company directors were given the freedom to use the loan in whatever way would help their company survive. For some this was paying rent and overheads, for others it was keeping up to date with their tax obligations. There are rules surrounding misuse of Bounce Back Loan funds and it is important you know what you can and cannot spend this money on.
• Banks and Bounce Back Loans - Understand what options your bank will give you when it comes to extending, topping up, or taking a payment holiday on your existing Bounce Back Loan.
• Extending your Bounce Back Loan - You are now able to extend the repayment term of your Bounce Back Loan. This will allow you to repay the money borrowed over 10 years rather than 6. Before extending your Bounce Back Loan, you should weigh up the pros and cons of doing this as there are significant financial implications.

Due to the scale of potential losses, the government - who provided security for each and every Bounce Back Loan - is facing huge pressure from taxpayers to ensure as much money is recovered as possible. As a result, banks are being asked to take a hard line with those who attempt to strike off the company with an outstanding Bounce Back Loan, and legislation is being rushed through to trigger investigations into those companies that do successfully manage to have their business struck off while leaving an unpaid balance on their Bounce Back Loan.

With options for closing a company with an outstanding Bounce Back Loan reduced, it has never been more important to take expert help and advice when it comes to winding up your business. Call our experts today for immediate support and guidance with your Bounce Back Loan.