Your bounce back loan got approved.
Now, what mistakes should you avoid with the money?
In this blog, I talk about the mistakes to avoid with your bounce back loan
(Check out the Mistakes To Avoid With Your Bounce Back Loan)
Let’s be honest, the last year has been really tough for business.
A lot of people have needed funding from the Government just to survive. A lot was out of our control including the right to even operate in some circumstances.
Sadly Ive heard of lots of people taking a bounce back loan and using them badly. In fact Ive heard of people spending on stuff like new cars, houses and stuff their business simple did not need.
Making financial mistakes now could cause big issues for your business once back to normal in a few months.
Now is the time to full assess your current financial situation and make a plan.
Here are the key mistakes to avoid with your Bounce Back Loan.
Firstly, business owners get a bounce back loan into their business bank account, and then they just withdraw it all into their personal account.
This loan is your business’s money, not your money. What you should be doing is using that money to invest in things like marketing, to get more leads and more sales, and recycle that money, then you can start taking it out of your business.
You can use a bounce back loan to pay yourself incrementally throughout the year. But not in a lump sum the moment you receive it.
Dont take out the money in one big chunk, you shouldn’t be using it to buy new laptops, new vans, and stuff like that, that aren’t really going to generate new leads and sales.
The bounce back loans purpose is to keep your business trading, the bounce back loan is also there to make sure that you start getting your business back on track and getting more customers into your business.