July 25, 2024

Coronavirus cash boost for businesses panicked into taking Bounce Back loans

BUSINESS owners who were panicked into taking a Bounce Back Loan when the UK went into lockdown because of Covid-19 can apply for more cash to secure their futures.

FFP Solutions has been working with companies to access up to £250,000 via the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

A Funding Circle Business Champion Broker, the St Asaph-based finance firm has been quick to unlock vital funding, and says those who initially took a Bounce Back Loan – worth a maximum of 25% of the previous year’s turnover or £50,000– can request a larger amount to cover a loss in revenue.

Banks were criticised for the pace in which they released funds under CLBILS, so worried bosses opted for the smaller amount because the process was seen as being easier, and in many cases the money was in your account the next day.

FFP Solutions Director Richard Lloyd-Jones revealed companies which took that route are eligible for a CLBILS loan but would have to use a portion of it to pay back their Bounce Back Loan.

“That early uncertainty led to a lot of sleepless night, a lot of panic and distress for many businesses,” said Richard.

“Because it was unchartered territory people were applying to the Bounce Back Loan Scheme (BBLS) to cover a shortfall, and nobody really knew how long this was going to go on for and how much money would be lost.

“As a result, a lot of owners and directors who took the £50,000 realise now it was nowhere near enough, so we are advising and helping get them back on track.”

He added: “We are now in the position that anyone who applied for the Bounce Back Loan can go to the CLBILS, and as a Funding Circle broker we are able to process this for them.

“We are seeing this a lot and are happy to help, because now is when businesses need it most after a challenging period for everybody.”

The CLBILS ends in October but is expected to be extended to cope with demand, and the impact on myriad sectors across the country.

Businesses will not be required to make repayments for 12 months; there are also no fees payable by the business to take out the loan and no interest or capital repayments are made in the first 12 months.

All loans will have an APR (Annual Percentage Rate) below 9% and companies can borrow between £50,001 and £250,000 over a period of two to five years. No personal guarantees are required.

Richard added: “If you are a business that has been adversely affected by the Coronavirus then please get in touch.”

For more information and to speak to a member of the team at FFP Solutions, call free on 0800 783 3117 or visit the website: www.ffp-solutions.co.uk/

Visit www.gov.uk for more on the Coronavirus Large Business Interruption Loan Scheme (CLBILS).