How does the Bounce Back Loan Scheme work? You’re in the right place because this blog post will discuss everything you need to know before you apply.
I’m going to share with you all the details on the UK bounce back loans, who’s eligible, who’s not how they work, what the risks are to your business.
(Check out the video above to get the Bounce Back Loan Scheme Explained)
Let me explain to you what these bounce back loans are. The government set up bounce back loans to support business owners that have been hit hard by these trying times.
This loan is currently available until March 2021.
Loans are from £2,000 up to £50,000 and you can get up to 25% of your turnover (if you turned over £100,000, you can take a loan up to £25,000 pounds) as long as you started trading before the 1st March 2020.
This is an opportunity of a lifetime to fund your business with almost zero risk, because there is no security needed by you.
The interest rate with this is crazy cheap at only two and a half percent. It’s almost nothing.
Sole trader? You can still get these loans but you have to be a little bit more cautious because you do have some liability if it didn’t work out.
For business owners, there’s no security and you don’t have to make any payments for a year. This gives you that chance to rebuild your business and get focused again.
My advice is that all business owners, sole traders, and limited companies take one of these loans whether you need it or not. You should take it and put it aside not go out and buy new MacBooks and company cars and etc. Then You’ve got that money ready if you need it and if you don’t give it back.
If you don’t need it for any reason, and the market picks back up and your business is doing well. You can always pay it back early.
There are no charges for giving the money back. But if you don’t take the money, and then they stopped lending, you’re going to miss out.
And in two years, four years, four years, five years, who knows you might have opportunities that come up in your business that you wish you had that money, and you missed out.