Updated: Jul 14, 2020
The government’s Bounce Back Loan scheme has given many small businesses a lifeline in challenging times. Along with other schemes in the package of support from the Government, the Bounce Back scheme is an additional option available to small businesses.
The scheme means that any business in the UK can borrow up to £50,000, (capped at 25% of turnover) 12 months, with no interest payments and no capital repayments during that time.
After the initial 12 months, it’s repaid over a five year term at 2.5% interest. This rate is significantly lower than any small business would be able to borrow in ‘normal’ times. It represents an opportunity get cash into your business to invest in stabilising and growing, without the immediate worry of having to not only to start paying it back straight away, but the huge interest rates normally due too.
For many businesses, used wisely, your Bounce Forward Loan could be used to create
additional income which, in many cases, could enable you to pay it all back in full before the
monthly repayments even start.
Business debt and consumer debt are quite different, especially when the funds are used wisely to create more income and grow your business. These funds potentially could be paid back before the payments even start.
It would be a waste to spend that money on non revenue generating items. Instead, invest it in things that will make money and help you grow. This could be assets, equipment, technology,, systems or software.
You don’t have to spend it all at once and it’s worth really thinking fully about how you’re going to invest it to get the maximum value from your cash.
Before you invest any of your cash, you need to be clear on some key points:
What do you want to achieve?
How much do you want to take home each month?
What levels of sales is needed to achieve that? Or how many customers does that relate to?
Do you need additional resources to achieve your goal?
Not sure about the money bit? Then we can help you! This is a great opportunity to give your business a real boost and come out the other side, stronger, more profitable and perfectly positioned to grow and achieve your goals.
Get an expert on your side and really optimise your financial position and that of your small business.
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