Bounce Back Loans

[pisquee]

Justin - Often wonder if there should be a general business section on the forum?

Anyways, the Government Business Bounce Back Loans - I applied at 0730 this morning (before the offical 9am opening) with Santander who our business accounts are with. 1430 paperwork was emailed over for me to put a digital signature on, and by 1640 £50K was in our account

If your business needs a loan to help you get through this weird time, then these are so easy to get - on a par with the premises grants, and the furlough payments in the amount of questions you need to answer.

Interest after the free first 12 months is only 2.5% - so is very cheap lending even if you don't need it due to CV19

[GoonerGary]

Yes it's certainly a cheap loan. To be honest, I've no idea what I would do with a loan that size apart from hire staff?

[socialgiraffe]

I agree, it would be good to have a business/marketing section perhaps, although how many people just post in chit chat anyway (I am guilty )

Secondly, do you mind me asking the terms of your bounce back loan?

I know they are interest free for 12
Months but am wondering, do you have to pay any monthly payment during that time and what is the repayment amount after the interest free period.

Would be good to get some real feedback from an actual real loan.


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[pw66]

You almost have to take advantage of this, if you are eligable. The economy is going to be in such a bad way after this is over that we will all be paying for it in one way or another.

You can have up to 25% of turnover, up to a maximum loan of £50k. The govt. pays the interest for the first twelve months. No capital repayments for the first 12 months.
The banks aren't allowed to ask for personal guarantees, or attach the loan to property. ( Don't know what attachments the govt. can make, if any).

[pw66]

Just completed the forms and submitted them.

Reading the terms fully, the first 12 months interest is paid by the govt., followed by 60 payments of capital and interest at fixed 2.5%.

If you are a sole trader then the govt. can pursue your personal assets if you default, but NOT your main home or main vehicle! Basically your liability is limited to an old heatpress and a bag of dirty underpants!!!!:biggrin:

All of the questions are yes/no or a tick and are mostly self certified answers.

If you are a recent start up ( before March 1st 2020) you can estimate your turnover, so you can still apply!

I think there is going to be a sudden run on DTG printers!

[pisquee]

The terms did state you have to use the money solely and fully for your company only.
You cannot use it to purchase new fixed assets - unless you are updating/replacing existing equipment with modern equivilents

I am not sure how they would ever know like, but that's what it said.

[pw66]

The terms did state you have to use the money solely and fully for your company only.
You cannot use it to purchase new fixed assets - unless you are updating/replacing existing equipment with modern equivilents

I am not sure how they would ever know like, but that's what it said.

Probably to deter people having the loan just to buy equipment.
Like you said - how will they know? Once it is in the current account the money will just get mixed in with everything else. It will be hard to seperate the loan from regular cash flow. If you use it to repay some of your own invested capital, reduce an overdraft or existing loan, or even pay your own wages there is nothing to stop you reinvesting it in the business.

We are only talking about 25% of turnover, which is conceivably within the bounds of planned investment into fixed assets.

[GoonerGary]

I agree, it would be good to have a business/marketing section perhaps, although how many people just post in chit chat anyway (I am guilty )

Secondly, do you mind me asking the terms of your bounce back loan?

I know they are interest free for 12
Months but am wondering, do you have to pay any monthly payment during that time and what is the repayment amount after the interest free period.



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First monthly payment (at month 13)

https://www.santander.co.uk/business/bo ... back-loans

[webtrekker]

Obviously, if you take out a 6-year loan and pay nothing in the first year, then the full amount of the loan + interest will still have to be spread over the remaining 5 years. You don't get a year 'free,' it's only deferred.

[Ravisteam]

Justin - Often wonder if there should be a general business section on the forum?

Anyways, the Government Business Bounce Back Loans - I applied at 0730 this morning (before the offical 9am opening) with Santander who our business accounts are with. 1430 paperwork was emailed over for me to put a digital signature on, and by 1640 £50K was in our account

If your business needs a loan to help you get through this weird time, then these are so easy to get - on a par with the premises grants, and the furlough payments in the amount of questions you need to answer.

Interest after the free first 12 months is only 2.5% - so is very cheap lending even if you don't need it due to CV19

Timm ,
Did the bank ring you ?. , or just done it straight away , I am with HSBC and just applied through , They only asked me how much was my turn over but didn't ask me to send any documents .Just curious how long its taking ..Thanks