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Tenable Support Team
Senior Business Advisor
Key Takeaway
Bounce Back Loans were designed to help businesses during COVID-19, but repayment can be challenging. Understanding your options is crucial for making the right decision for your business's future.
If your business took out a Bounce Back Loan (BBL) during the pandemic, you're now facing repayment decisions that could significantly impact your company's financial future. With various options available, it's essential to understand each one and choose the strategy that best fits your current situation.
Bounce Back Loans were government-backed loans of up to £50,000, designed to help small businesses survive the COVID-19 pandemic. These loans offered:
Continue with the original 6-year repayment plan, making monthly payments as agreed.
Pay off the loan early, either in full or through larger monthly payments.
Request a temporary pause in payments if you're experiencing financial difficulties.
Extend the repayment period beyond 6 years to reduce monthly payments.
Your choice should be based on your current financial position, future cash flow projections, and overall business strategy. Consider both short-term relief and long-term implications.
Review your 13-week cash flow forecast to understand your payment capacity.
Compare the total cost of each option, including interest and fees.
Consider your business growth plans and future financing needs.
If you're unable to meet your BBL repayments, it's crucial to act quickly and communicate with your lender. Options may include:
Don't wait until you miss a payment. Proactive communication shows good faith and may lead to more favorable arrangements.
Your lender may offer payment holidays, reduced payments, or term extensions.
Consider consulting with financial advisors or insolvency practitioners for guidance.
Our experienced team can help you navigate your Bounce Back Loan repayment options and develop a strategy that works for your business.
Choosing the right BBL repayment strategy is crucial for your business's financial health. Whether you opt for standard repayment, early settlement, or need to explore restructuring options, the key is to make an informed decision based on your specific circumstances.
Remember, there's no one-size-fits-all solution. What works for one business may not be suitable for another. Take time to assess your options, seek professional advice if needed, and choose the path that best supports your business's long-term success.
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