Can't Pay Back Bounce Back Loan? Get Help
Struggling to repay your bounce back loan? Find out the right way with our experts. Get help today if you are unable to repay your Bounce Back Loan.
Sole Traders and Ltd companies - Struggling to pay BBLS
In the aftermath of the Covid-19 epidemic, the government launched a variety of stimulus packages to aid companies that are struggling during a period of unimaginable interruption to business. Since many companies were having to close or even scale down their operations – to meet the lockdown regulations Many were finding that their cash reserves quickly running out.
Bounce Back Loans were launched in March 2020 and were accessible to all limited companies within the UK. Up to PS50,000 in loans could be obtained , and because these loans were guaranteed by the government, there was no personal guarantees needed to be offered. To further encourage the borrower there was no payment for the loans were required for the initial 12 months, and the government also paying the interest for this period.
Although these loans proved be beneficial to many at the peak of the pandemic, a lot of businesses are now being required to make monthly payments to these loans even though their businesses may not be completely recovered from the pandemic disruption. What is your next step when you’re unable to pay back the Bounce Back loan?
Are you having difficulty repaying your Bounce Back Loan? There are various debt management options available for directors and sole traders in this situation.
Can’t repay our Bounce Back Loan - Get Help Today
What are the Bounce Back Loan repayment terms?
Bounce Back Loans are originally available over SIX years, with the initial year of the loan being completely free of payments. A fixed interest rate of 2.5 percent, however, the government will pay the interest as well as any additional charges for the first 12 months.
Repayment for the Bounce Back Loan can take shape of set of equal monthly installments that are paid direct to the lending institution.
When these loans were initially made available, nobody would have anticipated that the lockdown measures would being in place one year after. This means that many companies that have taken the Bounce Back Loan confident in their ability to pay it back at the time it was due, however, have discovered that the trade isn’t returning to pre-pandemic levels as fast as they had hoped for. This has created huge difficulties in the repayment of the loan.
The government recognized the challenges that businesses might face in the coming years, and to address this they announced the launch of the Pay As You Grow (PAYG) scheme in the Winter Economy Plan in September 2020.
Know about Bounce Back Loan repayment terms
What is the Pay As You Grow (PAYG) Bounce Back Loan scheme?
The PAYG modification, which was introduced in the PAYG legislation, provided various Bounce Back Loan payment options that made it easier for businesses who have problems in repaying their loan as planned by allowing them deferring the payment of the Bounce Back Loan. They included:
- The possibility of delaying payments for an additional six months, in addition to the 12 months that are already provided as normal. The option to defer payments for a payment holiday was initially available to businesses who had completed the monthly payments, however it’s now available to all businesses after their first payment. The delay will mean that the interest rate will remain in place throughout the six-month pay-off period, which will be more expensive throughout the duration of the loan.
- The option of extending the duration for the Bounce Back Loan from six to 10 years. In this manner could cut monthly repayments by about half. This could be the difference between being able keep up with its repayments or getting into arrears.
- The possibility of making only interest-free payments for up to six months, a decision that could reduce temporarily the burden of repayment per month however, it will ensure that no further charges for interest on the loan be charged.
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write off a Bounce Back Loan if I can't pay back?
The Bounce Back Loans covered by the federal government, meaning that no personal guarantees need to be offered. This means that the majority of instances the company that goes into liquidation and being a holder of Bounce Back Loans Bounce Back Loan will not be accountable for paying back the loan amount, but instead, the remaining balance will be taken care of through the federal government.
In the course in the process of liquidation the liquidator appointed (or official receiver in cases for compulsory liquidation) will review the manner in which it was that the Bounce Back Loan was spent to make sure that the money was not misappropriated. If there is suspicion of misuse the borrower could be personally held accountable to pay the debt.
Need to speak to someone?
If your business has been struggling with debts that are too big to manage and cash flow issues or a bleak future, you’re not the only one. We talk to directors of companies exactly like you each and every day, and are available to offer the guidance and assistance that you require. Call our team experts today at +44 7779648018
Get free advice with an initial consultation
If you’re a director of a limited company and you are concerned about how you will be able be able to pay off the Covid-19 Back Back Credit, or perhaps you’ve already registered in default on your loan It is essential to seek professional help and advice immediately. If you act sooner the greater possibilities will be available for you and your company. You can think about your options for rescuing your business and shutting it down if you are no longer convinced that it is feasible.
Acme Credit Consultant operates from more than 57 offices throughout the 7+ nations and provides a no-cost initial consultation for Directors and Shareholders. Contact our knowledgeable team to receive immediate advice about how to apply for a Bounce Back Loan today on
Frequently Asked Question (FAQ)
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