What do you need to know when applying for a bounce back loan with TSB bank?
(Everything You Need To Know About Applying A Bounce Back Loan with TSB)
Bounce back loans are designed to help businesses continue trading in these uncertain times. If your business has struggled in the last 12 months then a Bounce Back Loan is for you, let’s face it every business has had a more difficult year.
TSB and most major banks are running the Bounce Back Loan Scheme lending from £2000 up to £50,000. The interest rates are super low at just 2.5% and you can take up to 10 years to pay it back.
Not only that you get a payment holiday of 12 months at the beginning of the loan.
A huge part of this scheme is your business does not need to be profitable to get a loan. In fact these are designed for businesses that are currently not making any money.
Normally you would need to have security to borrow money, but this scheme is backed by the Government. So if your business were to fail, the Government would pay the bank back any money you owe.
What’s the pros and the cons of using TSB?
TSB is a great option if you already have an account with them. If you currently bank with TSB you should apply for a bounce back loan with them.
Simply log into your internet banking and apply for the bounce back loan. Bounce Back Loans are based off 25% of your previous years turnover, so if you did £100,000 you can borrow £25,000.
The application is simple, TSB will ask you as few questions bout your business. Most of the time you will get the money in your account within 24 hours of applying.
The reason the money comes so fast is as I mentioned these loans are guaranteed by the Government. This means there is no risk for the bank to lend you the money meaning its really fast to borrow.
If you don’t have a TSB account
Those that don’t bank with TSB might struggle to get an account set up. Heres the thing, most UK banks have been overwhelmed with people applying for these loans.
Very few banks are opening new accounts, so do apply with every bank that is lending. Some have waiting lists and others are very slow, so you must apply with as many as possible or you will miss out.
The two banks I suggest looking at first are Starling Bank & Metro Bank. Both are currently opening new accounts so are great options.