What to do if you cannot repay your Bounce Back Loan (BBL)

What-to-do-if-you-cannot-repay-your-Bounce-Back-Loan

What happens if I cannot repay my Bounce Back Loan? If you find repaying your Bounce Back Loan challenging, your lending bank might assist in extending the repayment period or offer a brief payment break to provide some relief. Difficulty repaying the loan could indicate underlying issues within your company, so be vigilant for other […]

Can I close or liquidate my company with a Bounce Back Loan?

Can-I-close-or-liquidate-my-company-with-a-Bounce-Back-Loan

Bounce Back Loan and Company Liquidation You can shut down a company with a Bounce Back Loan through Creditors’ Voluntary Liquidation (CVL) with a licensed insolvency practitioner’s help. Dissolving a company with an outstanding Bounce Back Loan isn’t an option; the strike-off process is for businesses without liabilities.  Can I close my company with an […]

Bounce Back Loan Help

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Bounce Back Loan is a debt It’s important to bear in mind that the Bounce Back Loan Scheme is a debt, and repaying the loan is a must.  Borrowers should make sure they can handle repayments before taking out the loan and should talk to their lender if they face financial difficulties. Lenders must offer […]

What is deemed Bounce Back Loan fraud?

What-is-deemed-Bounce-Back-Loan-fraud

Understanding Bounce Back Loan (BBL) fraud and BBL misuse  If your Covid-19 Bounce Back Loan (BBL) was spent for anything other than benefiting your business, you might have misused it. Misuse involves using the loan for personal buys or shifting funds to your personal account instead of following the salary or dividend route. If you […]

What Happens If I Default on a Bounce Back Loan?

What-Happens-If-I-Default-on-a-Bounce-Back-Loan

What Happens If I Default on a Bounce Back Loan? Bounce Back Loan Defaults  If you’ve missed a payment on your Bounce Back Loan, your lender could offer various solutions. The crucial step after defaulting is to communicate with your lending bank and inform them about the issues you’re facing. If they can’t assist, you […]

The Complete Guide to Bounce Back Loans: Understanding your options and where to go for help

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Understanding the Bounce Back Loan Scheme In the spring of 2020, the government implemented several measures to aid businesses and their proprietors during an unparalleled situation. Among these was the Bounce Back Loan scheme, initiated in March 2020. This scheme offered loans, with attractive features, of up to £50,000 to small and medium-sized businesses. The […]

Personal liability for Bounce Back Loans

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Am I personally liable for my Bounce Back Loan? Company directors aren’t personally responsible for Bounce Back Loans acquired by their company. The government has offered assurance to banks in case the loan isn’t repaid. The only exception is if you’ve misused the loan funds; in that instance, you could be personally accountable for the […]

Can a company write off Bounce Back Loans?

Can-a-company-write-off-Bounce-Back-Loans

Can my company write off its Bounce Back Loan? You can’t cancel Bounce Back Loans while your company is up and running. However, you could potentially discuss revised repayment terms with your lender. This might include extending the loan period or arranging a brief repayment break. The loan will only be written off if your […]

What happens if I choose to extend my Bounce Back Loan?

Bounce Back Loan Repayment Extension

If you choose to extend your Bounce Back Loan, you’ll typically enter into a process called the Pay as You Grow (PAYG) scheme. This initiative allows borrowers to extend their loan term from six to ten years, reducing monthly repayments. Additionally, you can opt for interest-only payments for up to six months or take a […]