The Business Bounce Back Loan Scheme is now open to Sole Traders, Partnerships and Limited Companies. Applications are for funding between £2,000 and £50,000, or 25% of turnover, whichever is the lower. The loans are for a fixed year term of 6 years at 2.5% however they can be settled early.
All applications are to be made online and successful claims will have funds transferred “within days”.
Note, you can not apply if you have a claim under the CBILS scheme. Any CBILS awards under £50,000 will be transferred to the Business Bounce Back scheme. You are also not eligible if your business was “in difficulty” at December 2019.
Apply directly with your current business banking provider or via the British Business Bank.
What we think:
This is a welcome addition to the support currently available. The existing corona virus business intervention loan scheme has been very slow and the loans have been notoriously hard to obtain.
These loans are at very low rates and are supported by the government for twelve months. Put to good use, they could be a real asset in your business and help to bridge the gap during this period of uncertainty.
But we also urge caution. Whilst any loan taken today might ease current difficulties, it will need to be paid back and that may only push the problem further down the road, so we would urge all businesses to undertake good financial discipline both now and as a business “habit” which includes but is not limited to:
• Review of the business: were parts of the business profitable? Are some areas of the business / target marketing worth focussing on more than others?
• Regularly reviewing your finances, such as monthly profit and loss and making assessments about future performance
• Working to a budget and targets.
• Keeping a cash flow forecast
We’d be happy to help with some or all of the above.
Also, do visit your business bank website and don’t hesitate to contact us if we can be of further support.