Bounce back loan

[Mr D]

If you mean 45,000 applications is a tiny number compared to how many businesses you thought would apply, I’m not sure I think it looks about right as it’s really just these banks’ existing customers. There will also be some who will wait until the dust settles. I think that’s about right.

If you mean 45,000 is a tiny number of applications to deal with and they should be coping better, then you’re wrong.

Would have expected more than 45000 to apply on the first day.

Perhaps the others are getting a bank account first so not counted in the loan applications.

 

[Red Wood]

Is there anything stopping businesses taking the loan, taking it as dividend or re-paying Directors Loan account and then using the Spongebob plan or whatever?

Yup, not being a complete and utter ass hole.

 

[Guy Incognito]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

Notice you can’t apply for this as well as CBILS.

 

[Gordon - Commercial Finance]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

Loads of businesses will fill their boots here when they don’t actually need the money, because the terms are so incredible that it would almost be a bad decision not to take this loan.

 

[Mr D]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

No different than if defaulting merely owing taxes.

 

[Mark T Jones]

Is there anything stopping businesses taking the loan, taking it as dividend or re-paying Directors Loan account and then using the Spongebob plan or whatever?

not really, apart from personal integrity

I suspect a few scumbags are already on it

 

[Gordon - Commercial Finance]

Would have expected more than 45000 to apply on the first day.

Perhaps the others are getting a bank account first so not counted in the loan applications.

There are probably thousands of businesses who are awaiting an answer on a CBILS loan of less than £50k and will eventually be converted over, but wouldn’t have applied today

 

[Mr D]

Loads of businesses will fill their boots here when they don’t actually need the money, because the terms are so incredible that it would almost be a bad decision not to take this loan.

Have you ever seen any offer even close to this kind of one? And given so freely?

Perhaps a mistake to be so free with money, however it does satisfy getting help out quickly if what people are reporting so far today is indicative.

 

[swankypants69]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

Notice you can’t apply for this as well as CBILS.

it's limited to 25% of your turnover though I think isn't it, so they won't be able to

 

[Gordon - Commercial Finance]

Have you ever seen any offer even close to this kind of one? And given so freely?

Perhaps a mistake to be so free with money, however it does satisfy getting help out quickly if what people are reporting so far today is indicative.

No, I’ve never seen anything like it. Unsecured lending is usually at double digit interest and hard to get hold of. That said I’ve not been in the game long really.

Feels more like indirect QE really

 

[Opinion87]

Yup, not being a complete and utter ass hole.

Yeah, but that isn't something that can be relied on, at all, and we all know it.

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this.

This. It's not far off people with a shed in the garden getting a £10k grant when their rates are 50 quid a month.

not really, apart from personal integrity

I suspect a few scumbags are already on it

As above, not exactly something that we should be relying on really, is it?

If I applied and got accepted I could take this £50k, take it out of my DLA account and split it between some index trackers and probably come out for the better. I wonder how many are in the same position.

 

[BusterBloodvessel]

Time to put my head above the parapet here maybe...

We don't - or shouldn't! - need this loan to get through the Covid situation. But we are applying for it anyway.

We have certainly needed the 10k grant, but we have only had to eat into a little of that so far, although frankly my concern is not that we should need it now but more when we fully re-open, I do not expect business to get to the level that it was anytime soon andwe take staff on furlough i expect to rely on the grant to get through the next period. Anyway, that's by the by..

Getting the bounceback loan for me is

Worst Case - Things take a lot longer to recover than anticipated and this money is there for us to lean on in 9, 12 or x months time.

'Neither here nor there case' - We repay the loan in 12 months if we decide not to push on with the next stage of our business and it's been a free insurance policy.

Best Case - We have a fully costed out plan for the next stage of our business to allow us to scale up production. The only thing we hadn't resolved was how to finance it! And this would finance it for us. If business resumes to a sustainable level then this money could put that next stage into practice. It would mean splashing out a big chunk of money (for us - relatively to the rest of the economy it's nothing!) as well as taking on a new business premises, paying additional rates, and employing 2 more full time members of staff as well as potentially increasing the hours of existing staff.


Assuming we get the loan, I'm not sure if I should feel guilty about taking something that we might not need or use, or indeed for being 'gifted' finance for the next stage of our business on a plate. But in fact, would we not be doing exactly what the government wants? As someone mentioned is it just a thinly veiled method of QE and exactly what they do want to happen is businesses to have a glut of low cost money that they pump right back into the economy and into expansion/improvement plans..?

 

[Opinion87]

Time to put my head above the parapet here maybe...

We don't - or shouldn't! - need this loan to get through the Covid situation. But we are applying for it anyway.

We have certainly needed the 10k grant, but we have only had to eat into a little of that so far, although frankly my concern is not that we should need it now but more when we fully re-open, I do not expect business to get to the level that it was anytime soon andwe take staff on furlough i expect to rely on the grant to get through the next period. Anyway, that's by the by..

Getting the bounceback loan for me is

Worst Case - Things take a lot longer to recover than anticipated and this money is there for us to lean on in 9, 12 or x months time.

'Neither here nor there case' - We repay the loan in 12 months if we decide not to push on with the next stage of our business and it's been a free insurance policy.

Best Case - We have a fully costed out plan for the next stage of our business to allow us to scale up production. The only thing we hadn't resolved was how to finance it! And this would finance it for us. If business resumes to a sustainable level then this money could put that next stage into practice. It would mean splashing out a big chunk of money (for us - relatively to the rest of the economy it's nothing!) as well as taking on a new business premises, paying additional rates, and employing 2 more full time members of staff as well as potentially increasing the hours of existing staff.


Assuming we get the loan, I'm not sure if I should feel guilty about taking something that we might not need or use, or indeed for being 'gifted' finance for the next stage of our business on a plate. But in fact, would we not be doing exactly what the government wants? As someone mentioned is it just a thinly veiled method of QE and exactly what they do want to happen is businesses to have a glut of low cost money that they pump right back into the economy and into expansion/improvement plans..?

I'm in almost identical situation.

 

[Mr D]

Time to put my head above the parapet here maybe...

We don't - or shouldn't! - need this loan to get through the Covid situation. But we are applying for it anyway.

We have certainly needed the 10k grant, but we have only had to eat into a little of that so far, although frankly my concern is not that we should need it now but more when we fully re-open, I do not expect business to get to the level that it was anytime soon andwe take staff on furlough i expect to rely on the grant to get through the next period. Anyway, that's by the by..

Getting the bounceback loan for me is

Worst Case - Things take a lot longer to recover than anticipated and this money is there for us to lean on in 9, 12 or x months time.

'Neither here nor there case' - We repay the loan in 12 months if we decide not to push on with the next stage of our business and it's been a free insurance policy.

Best Case - We have a fully costed out plan for the next stage of our business to allow us to scale up production. The only thing we hadn't resolved was how to finance it! And this would finance it for us. If business resumes to a sustainable level then this money could put that next stage into practice. It would mean splashing out a big chunk of money (for us - relatively to the rest of the economy it's nothing!) as well as taking on a new business premises, paying additional rates, and employing 2 more full time members of staff as well as potentially increasing the hours of existing staff.


Assuming we get the loan, I'm not sure if I should feel guilty about taking something that we might not need or use, or indeed for being 'gifted' finance for the next stage of our business on a plate. But in fact, would we not be doing exactly what the government wants? As someone mentioned is it just a thinly veiled method of QE and exactly what they do want to happen is businesses to have a glut of low cost money that they pump right back into the economy and into expansion/improvement plans..?

Better options than some. Cannot see anything wrong with it.
As you say, insurance policy that you pay off in 12 months when you know things are better. Or not as the case may be.

 

[Digimem]

Does a directors loan get included in turnover figures?

 

[OMGVape]

Applying through Lloyds bank there is a “business interruption payment” added to the loan. From what I understand, this is actually the first years interest being added to the amount borrowed. (£1250 on my 50k application).
So, as I see it, the loan is not interest free for the first year, the interest is simply added to what you borrow.

 

[Mr D]

Applying through Lloyds bank there is a “business interruption payment” added to the loan. From what I understand, this is actually the first years interest being added to the amount borrowed. (£1250 on my 50k application).
So, as I see it, the loan is not interest free for the first year, the interest is simply added to what you borrow.

Someone mentioned (may have been elsewhere) that Santander was doing that and business interruption payment was assigned to the bank as part of the loan.

 

[Gordon - Commercial Finance]

Applying through Lloyds bank there is a “business interruption payment” added to the loan. From what I understand, this is actually the first years interest being added to the amount borrowed. (£1250 on my 50k application).
So, as I see it, the loan is not interest free for the first year, the interest is simply added to what you borrow.

Yes it’s deferred interest rather than interest free. Not sure if others are doing that or just Lloyd’s, and also not sure how they’re getting away with it!

But then the rate is still so low it really matters not

 

[Digimem]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

Notice you can’t apply for this as well as CBILS.

Ive heard its capped at 25% of turnover - is this not the case?

 

[philipthechilip]

A Few Queries:

1. How long do we have to opt for this loan? Is it a short window of time we can apply for this, or is it going to be for the next few months?

2. It says in the application that the funds cannot be used for 'Personal' benefit. It has to be used for business expenses. I take this to mean that the loan cannot be used to pay directors? That makes sense. But does this mean that it cannot be used for wages for a director who is working for the company in addition to other staff? This can be helpful in cases where there isn't enough income currently to pay for this.

3. Is the bank going to be scrutinising and questioning each expense that the money is used for?

Any advice would be appreciated.

 

[Gordon - Commercial Finance]

Ive heard its capped at 25% of turnover - is this not the case?

I think the inference is that because it’s all self certified, the business in question would just be saying their turnover is £200k

 

[Rosco1112]

Heard someone on the radio moaning they didn’t get a CBILS loan of £65,000 when their turnover was £68,000. They are now taking £50,000 on this

That really makes little sense to me. Not from the point of view of the business, can’t blame them, but there are going to be hundreds of millions of pounds of defaults if this is indicative.

Notice you can’t apply for this as well as CBILS.

This is false though as they will only be allowed to borrow a maximum of £17,000 if their turnover is only £68,000

 

[Richard Cole]

Just received my BBL into my bank account, seriously impressed with Santander, start to finish in one day.

 

[OMGVape]

But then the rate is still so low it really matters not

I can get a cash advance of 50k from a couple of credit cards, interest free for 18 months and just 1.9% arrangement fee, do this is not so attractive to me now.

 

[Gordon - Commercial Finance]

Just received my BBL into my bank account, seriously impressed with Santander, start to finish in one day.

 

[BusterBloodvessel]

Just received my BBL into my bank account, seriously impressed with Santander, start to finish in one day.

Bloody hell, that is impressive.

Beers are on you!

 

[BusterBloodvessel]

A Few Queries:

1. How long do we have to opt for this loan? Is it a short window of time we can apply for this, or is it going to be for the next few months?

2. It says in the application that the funds cannot be used for 'Personal' benefit. It has to be used for business expenses. I take this to mean that the loan cannot be used to pay directors? That makes sense. But does this mean that it cannot be used for wages for a director who is working for the company in addition to other staff? This can be helpful in cases where there isn't enough income currently to pay for this.

3. Is the bank going to be scrutinising and questioning each expense that the money is used for?

Any advice would be appreciated.

1. it's available until 4th November.

2. Sorry, not my area of expertise.

3. I very much doubt it! It would appear that once it's yours, it's yours!

 

[Digimem]

I think the inference is that because it’s all self certified, the business in question would just be saying their turnover is £200k

ah i see.

Would directors loans be included as turnover?

 

[Opinion87]

ah i see.

Would directors loans be included as turnover?

No. It isn't turnover.

 

[Digimem]

No. It isn't turnover.

thank you

 

[Opinion87]

I can get a cash advance of 50k from a couple of credit cards, interest free for 18 months and just 1.9% arrangement fee, do this is not so attractive to me now.

Business or personal credit cards? The BBL is unsecured whereas the credit cards might be secured.

 

[Rosco1112]

Time to put my head above the parapet here maybe...

We don't - or shouldn't! - need this loan to get through the Covid situation. But we are applying for it anyway.

We have certainly needed the 10k grant, but we have only had to eat into a little of that so far, although frankly my concern is not that we should need it now but more when we fully re-open, I do not expect business to get to the level that it was anytime soon andwe take staff on furlough i expect to rely on the grant to get through the next period. Anyway, that's by the by..


Getting the bounceback loan for me is

Worst Case - Things take a lot longer to recover than anticipated and this money is there for us to lean on in 9, 12 or x months time.

'Neither here nor there case' - We repay the loan in 12 months if we decide not to push on with the next stage of our business and it's been a free insurance policy.

Best Case - We have a fully costed out plan for the next stage of our business to allow us to scale up production. The only thing we hadn't resolved was how to finance it! And this would finance it for us. If business resumes to a sustainable level then this money could put that next stage into practice. It would mean splashing out a big chunk of money (for us - relatively to the rest of the economy it's nothing!) as well as taking on a new business premises, paying additional rates, and employing 2 more full time members of staff as well as potentially increasing the hours of existing staff.


Assuming we get the loan, I'm not sure if I should feel guilty about taking something that we might not need or use, or indeed for being 'gifted' finance for the next stage of our business on a plate. But in fact, would we not be doing exactly what the government wants? As someone mentioned is it just a thinly veiled method of QE and exactly what they do want to happen is businesses to have a glut of low cost money that they pump right back into the economy and into expansion/improvement plans..?

Take the loan 100% we have no idea how bad things will get and this will at least give you some cushion to pivot if you have to.

Remember it’s not your fault the government decided to shut the economy down, they did that themselves

 

[Mr D]

Ive heard its capped at 25% of turnover - is this not the case?

You tell them the turnover or they access accounts to get it?

 

[Mr D]

This is false though as they will only be allowed to borrow a maximum of £17,000 if their turnover is only £68,000

Is anyone going to investigate based prior to giving the money out?
I would have thought that would take time, negating the benefit of the loan.

 

[Beyond]

I'm with Santander did mine at 1.30pm today for £10,000 and just been told its all ok

 

[Beyond]

You tell them the turnover or they access accounts to get it?

You tell them the turn over they cant check if you have two bank accounts

 

[OMGVape]

Business or personal credit cards? The BBL is unsecured whereas the credit cards might be secured.

spot on! It makes no difference to me as I have no intention of defaulting, but as someone said previously, it’s a sort of insurance policy because no one knows how things will be in the next year or two.

 

[trax7960]

I'm with Santander did mine at 1.30pm today for £10,000 and just been told its all ok

Did mine with Santander at 9am, so far....nada! :-(

 

[Beyond]

Did mine with Santander at 9am, so far....nada! :-(

They send an email and ask you to read the legal stuff then tick a box and it prints you name on the documents, then happy days !!!

 

[Rosco1112]

Is anyone going to investigate based prior to giving the money out?
I would have thought that would take time, negating the benefit of the loan.

Probably not but I’m sure there will be legal repercussions if an applicant lied on their application and later Defaulted on the loan