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How much is the loan up too?
Discuss Bounce back business loans in the Electricians Chat - Off Topic Chat area at ElectriciansForums.net
25% of previous years turnover....How much is the loan up too?
I am not sure if it has to be the previous year, as our current business only started mid-2019 so has no previous year's accounts, etc., but we do have a big contract signed for when we can get going.25% of previous years turnover....
I think for the purpose of simplicity the previous year is used but obviously it’s up to the bank if they feel you are a safe bet then all good ?I am not sure if it has to be the previous year, as our current business only started mid-2019 so has no previous year's accounts, etc., but we do have a big contract signed for when we can get going.
But for general guidance it is 25% of turnover which hopefully if OK for most existing businesses if 2019 was a good year.
Yes, that is why I was amazed!...obviously it’s up to the bank if they feel you are a safe bet...
Only applied this morning, new van, wages, training, advertising anything you want really....Yes, that is why I was amazed!
[automerge]1589616577[/automerge]
Just wondering who has got the loan so far, and what generally have you used it for? A new van is one thing discussed, but for many folk it will simply be living money just now.
Good luck! There will always be stuff you need to spend on so anything that keeps you going until things pick up.Only applied this morning, new van, wages, training, advertising anything you want really....
50k and 25% of turnover/estimated turnover.How much is the loan up too?
Yes, that is why I was amazed!
[automerge]1589616577[/automerge]
Just wondering who has got the loan so far, and what generally have you used it for? A new van is one thing discussed, but for many folk it will simply be living money just now.
Getting that covered with the BBB loan ought to result in no problems. Also you are not going to be unusual in that case, so probably no future issues with credit ratings.Still not optimistic on how credit is going to be managed by wholesalers and suppliers in general. I still have a Barclaycard which gives some leeway but the credit limit is not huge
"You may not use your loan to finance the purchase or hire of fixed assets, other than to replace existing assets with equivalent assets"
So for folk looking for a replacement van that is fine, but if you want some sharks with attached lasers and don't already have any in your volcanic lair, you are out of luck. Damn!
Personally I doubt it unless there is some other reason to investigate the business activities (e.g. fraud investigation, bankruptcy proceedings, etc) but obviously it would be wise to sit down and plan what you are going to use the money for and check it is at least in the spirit of the terms (so it has to be for the business long-term interests, not to pay a big dividend, etc).Will they be checking though, and if so, how ?
Personally I doubt it unless there is some other reason to investigate the business activities (e.g. fraud investigation, bankruptcy proceedings, etc) but obviously it would be wise to sit down and plan what you are going to use the money for and check it is at least in the spirit of the terms (so it has to be for the business long-term interests, not to pay a big dividend, etc).
I think the main no-no is to use it to pay off other debts without prior agreement (in particular to replace debt you are personally liable for with one gov-backed). Some info was posted here:
Personal liability for Covid-19 Bounce Back Loans
If you have been rejected for, or are struggling to obtain, a Bounce Back Loan, all hope is not lost. Discover the alternative business finance options here.www.realbusinessrescue.co.uk
What you can do is use the loan to pay your salary, and income otherwise used to pay you could then buy a new van for your business (or shark with laser, as needed).
It’s really simple @Andy78, takes 10 mins on the directgov site which will show you all available lenders, easier if you own bank is on the list, also easier if you have a dedicated business account, money takes a matter of days.....as @Leesparkykent pointed out at the beginning just take it and graft with it and give it back with in the year interest free.....I know people that have paid up they van finance with it (lower rates of interest).....I also know someone that took £50k and has put it in premium bonds for the year ?Thanks I'll give all the info a read before pestering my bank.
As you say you could pay yourself wages into a buffer account and then stock your koi pond with ill tempered mutated sea bass as you see fit.
I also know someone that took £50k and has put it in premium bonds for the year ?
Didn’t say it was legal mate.....I just know a lot of people that couldn’t care less about that sort of thing ?......I don't think that's allowed as you have to declare the money won't be used for investments, but I guess that comes down to whether you get caught or not.
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