Bounce back business loans

[Leesparkykent]

It was presented on the Martin Lewis programme last night, and I’m sorely tempted just to have a bit of cash in the bank since I’m not getting the SE scheme money.

Will wait and see what UC off next week first though

does your Mrs work?

 

[davesparks]

It was presented on the Martin Lewis programme last night, and I’m sorely tempted just to have a bit of cash in the bank since I’m not getting the SE scheme money.

Will wait and see what UC off next week first though

When filling in the income and expenses for UC make sure you include all allowable expenses, so everything that is allowable on your tax return.

 

[Gavin John Hyde]

Have applied for the bounce back loan, dont need the cash as such now, but would rather have it in my account just in case I need it should work stop completely or suppliers get tight with credit.
Filled it in yesterday afternoon online, had email late last night to digitally sign the documents, had email this morning saying all approved.
should have money during the week.
A very quick and smooth process.

 

[littlespark]

does your Mrs work?

Yes. Part time and furloughed.
we are partners in my business as it gave a higher tax threshold when I started out. (On advice from my accountant)
She got tax rebates last 2 years which make my business ineligible for the income support from hmrc.

 

[pc1966]

My colleague applied for us today to Santander and within a couple of hours we were approved! Surprise was not enough, I had to resort to astonishment. However, the catch (beyond them realising our nefarious plans, etc, soon) was the clause:

"You may not use your loan to finance the purchase or hire of fixed assets, other than to replace existing assets with equivalent assets"

So for folk looking for a replacement van that is fine, but if you want some sharks with attached lasers and don't already have any in your volcanic lair, you are out of luck. Damn!

 

[bigspark17]

How much is the loan up too?

 

[Baddegg]

How much is the loan up too?

25% of previous years turnover....

 

[pc1966]

25% of previous years turnover....

I am not sure if it has to be the previous year, as our current business only started mid-2019 so has no previous year's accounts, etc., but we do have a big contract signed for when we can get going.

But for general guidance it is 25% of turnover which hopefully if OK for most existing businesses if 2019 was a good year.

 

[Baddegg]

I am not sure if it has to be the previous year, as our current business only started mid-2019 so has no previous year's accounts, etc., but we do have a big contract signed for when we can get going.

But for general guidance it is 25% of turnover which hopefully if OK for most existing businesses if 2019 was a good year.

I think for the purpose of simplicity the previous year is used but obviously it’s up to the bank if they feel you are a safe bet then all good ?

 

[pc1966]

...obviously it’s up to the bank if they feel you are a safe bet...

Yes, that is why I was amazed!
[automerge]1589616577[/automerge]
Just wondering who has got the loan so far, and what generally have you used it for? A new van is one thing discussed, but for many folk it will simply be living money just now.

 

[Baddegg]

Yes, that is why I was amazed!
[automerge]1589616577[/automerge]
Just wondering who has got the loan so far, and what generally have you used it for? A new van is one thing discussed, but for many folk it will simply be living money just now.

Only applied this morning, new van, wages, training, advertising anything you want really....

 

[pc1966]

Only applied this morning, new van, wages, training, advertising anything you want really....

Good luck! There will always be stuff you need to spend on so anything that keeps you going until things pick up.

 

[Leesparkykent]

How much is the loan up too?

50k and 25% of turnover/estimated turnover.

 

[plugsandsparks]

Yes, that is why I was amazed!
[automerge]1589616577[/automerge]
Just wondering who has got the loan so far, and what generally have you used it for? A new van is one thing discussed, but for many folk it will simply be living money just now.

As expected , after paying myself which has been well overdue and suppliers all my remaining money has gone and the only money left in the bank is the loan. If i did not get the loan i simply would not be able to pay myself for a while to keep a positive working capital. Pretty relieved really.
Still not optimistic on how credit is going to be managed by wholesalers and suppliers in general. I still have a Barclaycard which gives some leeway but the credit limit is not huge

 

[pc1966]

Still not optimistic on how credit is going to be managed by wholesalers and suppliers in general. I still have a Barclaycard which gives some leeway but the credit limit is not huge

Getting that covered with the BBB loan ought to result in no problems. Also you are not going to be unusual in that case, so probably no future issues with credit ratings.

At least, we can all hope.

I'm not in quite the same business, but the basic financial rules are the same as professional sparks like yourself. It won't be easy for anyone in the near future, which is why the gov has underwritten the BBB so make the most of it. It is one of the very few things they have done that seems to be competent, and ultimately the treasury understands that keeping businesses afloat is going to keep tax revenues in the years to come so the risk of the BBB is probably well worth it on a national level.