Bounce back loans: Managing repayments
8th September 2022
During Covid-19 many businesses took out a government backed Bounce Back Loan (BBL) to financially support with funds up to £50,000.
Repayments have now begun, and businesses are using a range of options to manage this going forwards. Many businesses continue to struggle through the aftermath of Covid-19 and challenging economic times. The options for BBLs are as follows:-
- Monthly repayments over 6-10 years
- Interest only 6 month period
- Repayment pause for 6 months
- Repay entire loan with no early charges
While these options are available to businesses, they still need to consider cash flow in the long term and how the business will manage these repayments. Many clients are beginning to take a closer look at their cash flow and we are assisting with forecasting and modelling to enable them to identify any weak points.
This also promotes businesses using real-time information by keeping their accounting records on software such as Xero and Quickbooks so they can easily check their financial position in real time.
Should you require advice on the above, please get in touch with your usual Whitings contact.
Disclaimer - All information in this post was correct at time of writing.
