The most popular of the support schemes launched by the Government to help businesses withstand the Covid-19 pandemic was the Bounce Back Loan. With over 1.4M SMEs and large businesses taking out loans totalling over £4.3B during the pandemic, many are now facing up to the reality of having to pay that money back.
Put simply, 12-months down the line, the time has now come where repayments are coming into effect.
So, with this in mind, we thought we’d put together some bits of useful information to help you over the upcoming weeks and months.
What is a Covid-19 Bounce Back Loan?
1.4M loans were underwritten by the government as part of the Bounce Back Loan scheme during the Covid-19 pandemic. The loans, which were interest-free for the first 12 months and then provided a low-interest rate for the duration of the loan, launched in April 2020. The maximum loan amount was £50,000 and based on company turnover.
Despite allegations of fraud and misuse, the Bounce Back Loan scheme helped thousands of businesses stay afloat during the height of the pandemic and subsequent recoveries and false dawns.
Paying Back Your Bounce Back Loan
Back in June, the Financial Conduct Authority (FCA) warned that businesses were in no position to keep up with or even start making repayments on their emergency loans.
“Understanding the problems faced by the small and medium-sized businesses struggling to repay their loans,” said the co-author of the FCAs report, “is essential, while early engagement and dialogue are paramount along with the correct skills and experience in handling such circumstances.”
That said, the report also suggested that “well established, professional debt collection firms” – that’s us here at Cobra Financial Solutions – “should be appointed to handle the Bounce Back Loan scheme recoveries.”
Are You Personally Liable for Your Bounce Back Loan?
When taking out a loan, directors were asked to give personal guarantees to secure loans over £250,000. However, these directors are now liable for their repayments. If a director can’t pay or is refusing to pay, then the government are within their right to instruct debt collectors.
That’s where we at Cobra Financial Solutions come in.
Action Cobra Financial Solutions Today and Get Your Money Back
At Cobra Financial Solutions, we have a long list of businesses and individuals who we have recovered money from in the past, be it instructed by an individual, business or government representative. So, when you instruct the team at Cobra, you can rest assured that we are discreet, professional and highly effective.
If you need a portion of your Bounce Back Loan recovering, then get in touch with an experienced member of the Cobra Financial Solutions team on 0151 526 4222 to discuss your needs in more detail.
But don’t just take our word for it. See what one of our recent clients had to say:
“We are very thankful and grateful to Cobra for recovering our debt. If it weren’t for them there is a great likelihood that we would never have recovered the money owed to us.”
Email firstname.lastname@example.org today!