Covid Support and Bounce Back Loans

[JEREMY HAWKE]

When these were announced three years ago a couple of wise boys and girls on here predicted exactly what would happen and they were spot on

I did a search earlier but could not find the thread but only in the last few minutes a members is in distress over a BBL and liquidation and it is a common post on here now

I don't have too much advice apart from always use a good IP but I think it is really important to point out the accuracy of the advice on here

 

[Mark T Jones]

We 'in the trade' jokingly dubbed BBL as a grant with a repayment option.

In reality I don't think any of the people behind it we under any illusion how it would pan out.

What they did over estimate was their / their agents' ability to dig out and take action against the real abusers - so as always have targeted the low-hanging fruit of marginal offenders.

 

[Gordon - Commercial Finance]

It certainly had the desired effect of stimulating the market for high end luxury cars!

 

[WaveJumper]

I keep meaning to look up how many new companies were created over that period compared to previous years, loans were being thrown around like confetti and whilst a lot of people legit took some help many as we now know never had either a legit or going concern in the first place. Personally I think the banks have a lot to answer for, but they didn't care "it was all backed by the government" opps or should I say us the tax payer

 

[Mark T Jones]

I keep meaning to look up how many new companies were created over that period compared to previous years, loans were being thrown around like confetti and whilst a lot of people legit took some help many as we now know never had either a legit or going concern in the first place. Personally I think the banks have a lot to answer for, but they didn't care "it was all backed by the government" opps or should I say us the tax payer

I seldom defend banks, but in this case they were comprehensively dumped on by Government.

Effectively given a weekend to put a system together to churn out loans. As anyone in the business knows, shoving money out of the door is the easy bit of lending!

Sunak even used out loud the immortal, clueless line 'we helped the banks out, now it's their turn to help us out'.

 

[Waddy]

Would be interesting to see some figures on the number of BBLs which are up to date, the number in arrears, and the number defaulted.

 

[BustersDogs]

I'm still paying mine on time (sole trader). It will outlast the van it paid for... I do love having a bigger van, but the BBL will likely stop me upgrading to something less polluting or more modern. I should never have chosen such a long loan for a vehicle. I am struggling more the last two years than I did during 2020 and 2021, so can't even clear it quicker.

 

[Lisa Thomas]

I seldom defend banks, but in this case they were comprehensively dumped on by Government.

Effectively given a weekend to put a system together to churn out loans. As anyone in the business knows, shoving money out of the door is the easy bit of lending!

Sunak even used out loud the immortal, clueless line 'we helped the banks out, now it's their turn to help us out'.

I agree with that.

I spoke to a banker recently who said the banks didn't find out about the scheme until it was announced on the news, and they only had a matter of weeks to set up a new system, which would usually take over a year.

 

[Lisa Thomas]

Would be interesting to see some figures on the number of BBLs which are up to date, the number in arrears, and the number defaulted.

Agreed. These are the lastest figures as far as I know, which are over a year old now:

Bounce Back Loan Scheme performance data as at 31 July 2022

www.gov.uk

 

[japancool]

I agree with that.

I spoke to a banker recently who said the banks didn't find out about the scheme until it was announced on the news, and they only had a matter of weeks to set up a new system, which would usually take over a year.

I'm shocked!

Oh wait, no I'm not.

 

[MRQ]

I am struggling more the last two years than I did during 2020 and 2021

I'm hearing a lot of that... actually; I'm experiencing it myself. In many respects it's like living in a different world.

 

[AlanJ1]

Personally I think the banks have a lot to answer for, but they didn't care "it was all backed by the government" opps or should I say us the tax payer

Yeah this is a really bad take. As with the above posters the banks had absolutely no choice, most didn't want involved but they had too. Given a couple of days to sort a system, absolutely no chance to get it right.