Bounce Back Loan Scheme - Quick Tips!

Bounce Back Loan Scheme - Quick Tips!

Bounce Back Loan Scheme - Quick Tips!

Posted: 14/05/2020

Things are always changing, with regards to the general rules and with regards to the financial support that has been made available.

One of the latest announcements has been the bounce back loan, have you heard of it?  Is it something you would like to find out more about?  We've provided some information below with a few of the questions we've been asked by a range of businesses!

In summary; 

What is the bounce back loan;

A loan between £2k and £50k.

Interest rate of 2.5%.

The government will pay the first years' interest and fees.

There are no repayments in the first 12 months.

The loan term is 6 years.

How do I access the bounce back loan

Go to the bank who you have your business account with, they will have a simple online process to follow.  Answer a few questions and apply for the amount you need.

What if I have a personal account for my business?

This did cause some delays initially but a process has been developed to get the money out to those that need it.  They will create an account which is called a 'feeder' account and they will transfer the loan to that account in the first instance and then the money will be paid to your own personal account.

Should I apply if I don't need it?

No one knows how long the disruption will go on for.  So I would suggest you do apply and keep it in a savings account, if you don't need it and your business is back to where it needs to be by the end of the 12 months, then just repay it to the bank.  There are no early repayment charges.

If I access the loan do I miss out on the grant?

No, they are both separate funding schemes so you can have both.

If you feel you need the extra cash, just to give you peace of mind and you're not sure if you can access it, then give me a call and we can have a chat.