Bounce back business loans

[pc1966]

Well our application went in just after lunch time today and an email arrived from the bank at 6pm to say the money had arrived in the account.

I'm astonished that anything could be done that quickly and efficiently!

 

[Andy78]

"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!

Will they be checking though, and if so, how ?

 

[pc1966]

Will they be checking though, and if so, how ?

Personally I doubt it unless there is some other reason to investigate the business activities (e.g. fraud investigation, bankruptcy proceedings, etc) but obviously it would be wise to sit down and plan what you are going to use the money for and check it is at least in the spirit of the terms (so it has to be for the business long-term interests, not to pay a big dividend, etc).

I think the main no-no is to use it to pay off other debts without prior agreement (in particular to replace debt you are personally liable for with one gov-backed). Some info was posted here:

Personal liability for Bounce Back Loans

If your company is unable to keep up with the repayments for its Bounce Back Loan, you may be worried about how this may affect your personal finances.

www.realbusinessrescue.co.uk

What you can do is use the loan to pay your salary, and income otherwise used to pay you could then buy a new van for your business (or shark with laser, as needed).

 

[Andy78]

Personally I doubt it unless there is some other reason to investigate the business activities (e.g. fraud investigation, bankruptcy proceedings, etc) but obviously it would be wise to sit down and plan what you are going to use the money for and check it is at least in the spirit of the terms (so it has to be for the business long-term interests, not to pay a big dividend, etc).

I think the main no-no is to use it to pay off other debts without prior agreement (in particular to replace debt you are personally liable for with one gov-backed). Some info was posted here:

Personal liability for Bounce Back Loans

If your company is unable to keep up with the repayments for its Bounce Back Loan, you may be worried about how this may affect your personal finances.

www.realbusinessrescue.co.uk

What you can do is use the loan to pay your salary, and income otherwise used to pay you could then buy a new van for your business (or shark with laser, as needed).

Thanks I'll give all the info a read before pestering my bank.
As you say you could pay yourself wages into a buffer account and then stock your koi pond with ill tempered mutated sea bass as you see fit.

 

[Baddegg]

Thanks I'll give all the info a read before pestering my bank.
As you say you could pay yourself wages into a buffer account and then stock your koi pond with ill tempered mutated sea bass as you see fit.

It’s really simple @Andy78, takes 10 mins on the directgov site which will show you all available lenders, easier if you own bank is on the list, also easier if you have a dedicated business account, money takes a matter of days.....as @Leesparkykent pointed out at the beginning just take it and graft with it and give it back with in the year interest free.....I know people that have paid up they van finance with it (lower rates of interest).....I also know someone that took £50k and has put it in premium bonds for the year ?

 

[davesparks]

I also know someone that took £50k and has put it in premium bonds for the year ?

I don't think that's allowed as you have to declare the money won't be used for investments, but I guess that comes down to whether you get caught or not.

 

[Baddegg]

I don't think that's allowed as you have to declare the money won't be used for investments, but I guess that comes down to whether you get caught or not.

Didn’t say it was legal mate.....I just know a lot of people that couldn’t care less about that sort of thing ?......

 

[Midwest]

Doesn't this dosh appear in your accounts, you have to submit HMRC? Premium Bonds and accrued interest (£40 a month) would appear somewhere.