Any other small business owners thinking about applying for one of these new Bounce Back loans that were announced by the Chancellor this afternoon:
https://www.gov.uk/government/news/s...nce-back-loans
No fees, interest or payments to be made for 12 months. Given issues with supply chains, I'm thinking about buying quite a bit of stock (for the first time really as we normally operate a drop ship type approach). Any downsides?
I’m only really posting to antagonise those who think ‘company director’ means tax thief (as one of many who will get next to zero help from the government while others sit at home on 80% wages)
Might get a loan and buy premium bonds. Then pay it back before interest kicks in.
After all I pay plenty of tax to pay those on 80% who incidentally will not have to pay back a loan why shouldn’t I try and make some money while I have zero work coming in?
Because that’s not what it’s for?Originally Posted by MrSmith
But do sympathise. Directors do seem to be somewhat overlooked.
It’s hard to give any answer when the details are so very thin on the ground. Firstly what criteria is there for accessing the loan. For example they stipulate that this is for small business, but what exactly do the mean by that?
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"For accounting purposes Companies House defines a small business as employing less than 50 people and a turnover under £6.5 million."
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Last edited by Ruggertech; 27th April 2020 at 19:14.
To be fair, the taxpayer will be funding all these schemes inevitably.
Will they all have to pay them back 100%?
Who else is there to pay it all back do you think???
Well I’m quite certain those being furloughed or the businesses that would normally pay them will not have to repay those salaries back 100%.
We all pay, only some benefit. It’s better than a kick in the nuts though and I’m sure for some businesses it will be the difference between folding or being able restart effectively when allowed to.
Even with this scheme there are still loads of people who will still slip through the net.
Maybe you should have posted this in the BP then perhaps ?
If he had, we could have had a nice chat about this:
https://www.thetimes.co.uk/article/c...c6b708c58364ba
Not a loan so obviously not.
I’m sure those in the G&D realise the inequalities in the policy and will not be bothered by my little dig as it simply doesn’t apply to them.
Inequality? Small businesses keep staff courtesy of the tax-payer then get a free loan on top.
Yes thank you, my point being at the time of writing there is scant detail on the criteria needed to get this loan, or conditions attached. Could yet be a knee jerk action, and will suddenly become difficult to access to stop everyone using the money to buy stainless Rolex watches with it!
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Apologies if my answer seemed curt, not intended that way. I dont know what conditions are or are not attached, but this answers straight away if a business fits this particular criteria.
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Last edited by Ruggertech; 27th April 2020 at 23:24.
Anyone else applied for this today. Now what can I buy for £50k, Rolex, secondhand 911, shares in pharmaceuticals, rental property, summer holiday for 2021..... all said in jest, before anyone jumps in.
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Me too, and approved in 10 mins.
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Did they charge an arrangement fee? I heard Lloyd’s charge 2.5% (anecdotal, I can’t confirm this)
£1250 to arrange a loan wouldn’t surprise me it’s interest free and payment free for 12 months surely secured?
Presume it is the same with all banks, Lloyds interest is 2.5% fixed, charged from 12 months after the money has been loaned. The government pick up the fee for the first year, which I think is where you are getting the arrangement fee and figure from.
Lets face it they are paying my staff 80% of their wager to sit at home or get other work, paying the self-employed £2500.00 per month just for fun, many of these self-employed (certainly around me, two buildings that continue to be built in our village for example) could still be working too. All seems utter madness, yet they are deliberately ignoring the honest hard working company directors, who take the risks, bookwork all scrutinised, are expected to work for free to in order collect a fair chance of the countries tax for them in VAT, NI, Income tax, corporation tax etc.
I might gamble the £50k on the first horse I see, when the race meetings get back under way. If that is going to be too far off, I'll have to chuck it all at 50,000 lottery scratch cards, are they still £1.00 each these day's? .... maybe that gives away how long it is since I bought one.
No fees anywhere. And 2.5% from Year 2. Nothing to pay at all if you settle up in the year
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Which lender, if you don’t mind me asking?
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Which lender, if you don’t mind me asking?
I have checked with lloyds and barclays and both offer the same conditions getting 25% of total annual turnover 2019 as a loan .
12 months no interest and afterwards 2.5%.
You can apply online and approved within 24h.
I think its good for some companies who are or will be struggling after lockdown .
Lloyds Bank.
We applied to our bank (Santander) yesterday morning & funds are in our account this morning. I don't often have good things to say about banks but they do seem to be responding very well considering the amount of applications they'll be having.
How do you apply if you don’t have a business account with any of the lenders involved in this bounce back loan scheme ?
You can apply but more checks will be done as you don’t have a business account with approved lenders . Contact them and see what they request .
Yep, £50k been put into our account today too. Now to figure out how best to gamble with it, relatively safely of course
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They are also "the tax-payer".
Other tax-payers then.
So many really hard working people working long ours on low wages and trying to make ends meet week to week or month to month will be picking up the tab for your "greed". You should be ashamed of yourselves but I know you won't be...
Did the bank do the calculations? Look at the turnover through the account and then offer 25%? Or did you have to supply any numbers? Do you know if get the option of borrowing less if you feel you do not require the full amount?
With Lloyds (in my case) I simply put a turnover figure down, I guess they can see from our bank accounts with them, if that figure is likely to be a true reflection.
Edit to say, I put all the figures down (turnover, loan request amount) none were actually calculated by the bank
I think that they have taken quite a bit on trust here. I've also done this process through Lloyds. I think the HMRC will be checking the figures in the future and I've heard that fines will be issued for those that have exploited the scheme. In the process of applying, you have to commit to the supplying true figures and also that the loan will only be used for business not personal gain. I can't believe that they won't be checking up on these things when the situation becomes a bit calmer.
thanks for the info.
i’m still deliberating as to if/when i might take a loan, don’t need it now but might towards the end of the year to help cashflow depending on how busy i am (or not)
Are you aware that a loan is something that must be paid back?
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