Bounce back loan

[Jayne Beahan]

Hi, my first post on here, so I’m sorry if it’s a bit rambling. We took out the bbl in May 2020. We’ve exhausted all the pay as you grow options. We’ve managed to make to make about £4K in monthly payments, £495 monthly until the start of this year. Our very small business has suffered a huge downturn in business caused by the cost of living crisis and the general downturn in retail. Not helped by my health issues, cancer for the last two years and anxiety and depression. My husband has been diagnosed with cognitive issues and can’t deal with anything, so the whole responsibility for everything financial, both personal and business is down to me. Lloyds are probably going to refer the loan to the recovery team and I’m just scared and so stressed about our future. We don’t want to fold our business because it does provide an income, without which we’d really struggle. We’ve been trading since 2004. We’re not a limited company…any advice would be greatly appreciated

 

[japancool]

How much was your BBL for?

 

[Jayne Beahan]

£36k

 

[japancool]

Two questions.

What was the loan used for?
Do you have any equity in property?

 

[Jayne Beahan]

It kept us going through lockdown buying stock. We were closed down as non essential and then they decided we were essential in the second one so we had to pay rent etc and took nothing. Example Jan 20 we turned over £10k, Jan 21 when they made us open we took zero and still had rent etc. no equity in property

 

[Lisa Thomas]

Sorry to hear about your issues. It sounds like you are in a partnership an the partnership is insolvent.

If injecting or raising funds is not possible then you should explore the different insolvency options available.

If you believe the business is still viable you might want to explore a Partnership Voluntary Arrangement or interlocking Individual Voluntary Arrangements.

If viable, these would freeze the debt and enable you to continue trading whilst paying contributions to repay towards the costs and creditors over a period of time -often up to 5 years.

You will need to produce cashflow forecasts for the next 12 months so show the business is viable, in the first instance.

 

[japancool]

You can also call businessdebtline:

Home - Business Helpline UK

Business Helpline offers expert, free advice and support for company directors facing insolvency. Our business support helpline can help you today.

businesshelpline.uk

They're a debt charity who can give you specialist business debt advice.