Let’s be honest right now we are living in uncertain times, if you have a business you might be thinking where is the next payment coming from? Can I keep all my staff? And will be business be viable moving forward?
Any business which has been impacted due to coronavirus can apply for a 100% government backed loan worth up to £50,000.
Heres the thing, every single business in the UK has been impacted in some way by Covid 19.
For years Ive met thousands of Entrepreneurs who wanted to get funding for their businesses and not been able.
Well now you can get a loan with NO INTEREST and NO REPAYMENTS for a year, then its only 2.5% interest so basically its FREE lending.
Even more, you DO NOT have to personally guarantee it.
My students in the Business Accelerator have been applying with a 100% SUCCESS RATE of getting the funds.
BAD CREDIT – No problem.
Business Struggling – No problem.
The Government want you to take the money to KEEP THE ECONOMY GOING.
How do bounce back loans work?
Bounce back loans are not the same as the Coronavirus Business Interruption Loan Scheme those are more focused on medium sized businesses. Those are for much larger amounts and come with more risk for you.
What you MUST know about Bounce Back Loans.
- You can borrow between £2,000 and £50,000. The amount you can get is capped at 25% of your turnover for the year 2019. HOWEVER if you are a new business you are forecast what you were expecting to turnover this year (READ THAT AGAIN)
- You will love this. NO INTEREST is charged in the first 12 months and NO REPAYMENTS are made in the first 12 months. Giving you some breathing room to catch up with your cashflow.
- After the fist year, whoever you borrow from will charge just 2.5% annual interest. This is way cheaper than a normal loan is is almost FREE lending.
- You have the option to pay the loan back and any point without penalty. With some lenders you can overpay if you wish to clear it early. This is a BIG WIN for your business, even if you don’t feel you need if you should take the loan and sit on the cash. Remember you can pay it back early if you don’t need it, but you will NEVER get another chance to borrow this cheaply and easily.
- You have 6 years to pay the money back, the first year is interest FREE so you are paying back over 5 years. Remember you can overpay or pay back early at any point. The sooner you repay the less interest you will be charged.
- Its Unsecured, THIS IS HUGE almost all business loans require security in normal times. What this means is if for any reason your business does not work out you won’t be chased for the money. Secured loans means they can chase you for your house if you have secured it against that.
- Your Business must have been trading before 1st March, Im sure that covers you as not many businesses have started since March this year due to current circumstances.
- Got BAD CREDIT? That won’t impact your ability to get the loan, so MOST people will get this. Currently my students have a 100% success rate in applying. You don’t even need to prove your business is viable going forward which is a huge risk for the Government but NOT FOR YOU.
- It won’t show on your personal credit file but will show as a soft search on your business credit report.
- Over 16 Banks are now offering this full list here.
- You need a business or sole trader to get these but you dont need a business bank account.
- If you get a bounce back loan it does not stop you being eligible for other government support including the self employed scheme and even universal credit.
- You can use your bounce back loan to pay existing debt.