Bounce Back Loan Advice
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80%
Over 80% Of Debt Wiped
Out On Average
100+
Companies Helped
£££
£Millions In Debt
Written Off
How to Deal with a Bounce Back Loan You Can't Afford to Repay: Can I Write it Off?
While the scheme has been a lifeline for many businesses, it has also left some businesses struggling to repay the loan. If you’re one of those businesses, this article is for you. We’ll look at what you can do if you can’t afford to repay a Bounce Back Loan, and explore whether you can write off a Bounce Back Loan. We’ll also look at the risks of misusing a Bounce Back Loan, what happens if you close a business with an outstanding Bounce Back Loan, and your personal liability for Bounce Back Loans. We’ll also look at the ‘Pay As You Grow’ scheme and the repayment terms for Bounce Back Loans, and what you can do if you still can’t afford to repay the loan.
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Bounce Back Loan Advice - The Punk way
At Boardroom Punks, we take an innovative new approach to helping businesses. We aim to work on every financial solution possible before the insolvency practitioners are called in. If you are seeking advice concerning HMRC and the payment of your VAT bills, be assured that we have your interests in mind. SMEs are the backbone of our local economy, and we want to ensure that they are protected at all costs. Jobs, livelihoods, families, and futures are all interconnected with SMEs. The alternative approaches we offer are designed to protect both your business and lifestyle.
We have an elite team of financial experts that are serious about their trade. We have a variety of team members at Boardroom Punks with expertise in debt, VAT bills, business and project management, and government loans. Whatever advice you need regarding HMRC, know that we have experts on hand. You may have fallen behind on VAT bills, or you might be looking to negotiate a time to pay (TTP) to help pay off your debts. Whatever knot you may be in with HMRC, the Boardroom Punks will help simplify your problems. Come to the best possible solutions with us at hand.
WHO ARE THE BOARDROOM PUNKS?
Our business model was founded upon our managing director David Morgan’s experiences. In 2008 he received the news that his chain of opticians was trading insolvent and facing liquidation. After battling with the liquidators and the loss of assets of over £250,000, David dedicated his time to finding alternative solutions that would help with restructuring both his own business and the SMEs of the future. Today, Boardroom Punks is the solution that our director strived for, and we believe that we have the right tools in place to get any business back to a state where it can stand on its own two feet.
However, don’t just take the claims of expertise from ourselves. Our business experts have tested their skills in many different trading models. Beauty salons, haulage companies, decorators, and even jewellers have all needed the advice of Boardroom Punks. Whatever type of company you are looking to salvage, know that our solutions have been tried and tested across many different businesses. Some of the cases we are currently working on include businesses in the fitness industry, window installation, and wine. We always encourage our future clients to reach out and speak to those who have worked with us, as they are the best proof of our success.
Introduction to Bounce Back Loans
Under the scheme, businesses can borrow up to 25% of their turnover, up to a maximum of £50,000. The loans are 100% government-backed and have a 12-month repayment holiday. The interest rate is 2.5%, and the loans must be repaid within 6 years.
What to Do if You Can’t Afford to Repay a Bounce Back Loan
It’s important to be honest with your lender and explain why you can’t afford to repay the loan. They may be able to offer you more flexible terms, such as extending the repayment period or reducing the interest rate.
You should also speak to an accountant or financial advisor, who can help you assess your financial situation and come up with a plan to repay the loan. They can provide advice on how to manage your finances, how to reduce your costs, and how to increase your income.
Can You Write Off a Bounce Back Loan?
What Are the Risks of Misusing a Bounce Back Loan?
It’s also important to remember that the loan is 100% government-backed. This means that if you can’t repay the loan, the government has the right to recover the money from you. This could include taking legal action and taking money from your personal assets.
Closing a Business With an Outstanding Bounce Back Loan
If your business is insolvent and can’t repay the loan, you may be able to enter into a Company Voluntary Arrangement (CVA). This is an agreement between you and your creditors that allows you to repay your debts over a period of time.
What Is the Personal Liability for Bounce Back Loans?
However, if you enter into a Company Voluntary Arrangement (CVA) to repay your debts, you won’t be personally liable for the loan. This means that the government can’t take money from your personal assets to repay the loan.
How Does the ‘Pay As You Grow’ Scheme Work?
In order to be eligible for the scheme, businesses must prove that they have been affected by the COVID-19 pandemic and are unable to repay their loan.
What Are the Terms of Repayment for a Bounce Back Loan?
What If I Still Can’t Afford to Pay Back My Bounce Back Loan?
You should also speak to an accountant or financial advisor, who can help you assess your financial situation and come up with a plan to repay the loan. They can provide advice on how to manage your finances, how to reduce your costs, and how to increase your income.
If your business is insolvent and can’t repay the loan, you may be able to enter into a Company Voluntary Arrangement (CVA). This is an agreement between you and your creditors that allows you to repay your debts over a period of time.
Conclusion
You may also be eligible for the ‘Pay As You Grow’ scheme, which allows businesses to extend the repayment period, reduce their monthly payments, or take a payment holiday.
It’s important to remember that the loan is 100% government-backed and if you can’t repay the loan, the government has the right to recover the money from you. This could include taking legal action and taking money from your personal assets.
If you need help dealing with your Bounce Back Loan, get your free consultation now.
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“I was in a very bad place, David and his team saved my life, they were the ideal choice.”
Alan T
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“We had VAT issues that were affecting our ability to control cash flow. Since working with the Boardroom Punks team we’ve been able to move our business forward with a solution that perfectly suited our needs.”