The pandemic has been tough on most of us: office cubicles were replaced by Zoom meeting rooms; classrooms were replaced by living rooms; there were many changes and challenges we have had to adapt to. Businesses did not go unharmed either. The UK’s Office of National Statistics reported that in May of 2020 some industries have shrunk up to 92%, and the GDP shrank down to record levels!
So, how did the government avoid a complete economic collapse? With supporting schemes and programmes either created by, or backed by them- of course! The Bounce Back Loan is one of them, so let’s explore it:
What Actually is the Bounce Back Loan Scheme (BBLS)?
In the simplest of terms- it is a lending scheme designed to help small businesses through the pandemic. This is done by offering a loan from £2,000 to £50,000; keeping a fixed interest rate of 2.5%; having a “no repayment within the first 12 months” policy, and no charges for early repayments!
On top of that, businesses that did not take the maximum amount available to them when they initially applied for lending through the scheme, were able to apply for a top-up to add onto their original loan!
If this sounds perfect, then I did a good job explaining it. Sadly, the deadline for applications has passed, but for those of you who have already applied, you must now be worrying about the repaying… don’t worry, I’ve got you covered. Here are a few brief tips on how to ensure you make your repayment:
How To Ensure You Make Your Repayment
Set Up Monthly Reminders
The scheme tries to make your life easier by allowing you to pay the same amount every month, and reducing your interest percentage with every new payment, so you don’t want to forget or miss your date. I have been a strong advocate for reminders and calendars (schedules) and that is only because they work! We get busy in our day-to-day lives and it would not be surprising that we forget, especially if all we are relying on is our memory abilities! So put up a reminder and avoid any extra interest payments!
Pay earlier (if possible)
Continuing the trend of making life easier for you, the scheme allows early repayments with no extra charges! So, if you have made back more than you expected and are able to, make sure you make an early repayment! This way you avoid interest charges, debts and any unnecessary burdens. Pay early and enjoy all the benefits without drawbacks.
There you have it! The Bounce Back Loan is one of the schemes backed by the government to help small businesses like yours stay afloat and healthy in the face of the pandemic. I hope that you found this helpful and have learned more about the Bounce Back Loan. If you already have one of these loans and are struggling to pay it back, I am here to help! I offer funding help and financial advice! Go to https://mavisamankwah.com/funding-help-available/?inf_contact_key=daf3f5f628788a07a239673b12e42619680f8914173f9191b1c0223e68310bb1 to learn more and to fill your business call back form.
