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Just been talking to a customer who said his accountant* said he had eight small businesses contact him recently panicking about having to pay the bounce-back loan(s) in September.
Needless to say they'd all spent the money on new cars, holidays and shiny things! And are now looking for creative ways to get out of paying.
*nothing like a mate of a mate for a good tale - so this deadline thing may not be true! 🙂
IIRC, the BBL had a 6 year repayment plan, starting after the first year (so 5 years of payments). Should probably check, as I have one, but pretty sure that's right 😂
There are various options for repaying/extending payback period/taking a 6 month repayment holiday. The standard one meant that you started repaying 12 months after taking the loan.
If you took the loan in March 2021 (the end of the availability period) and took the 6 month repayment holiday straight away then that would correspond to repayments starting in September 2022. So that's the latest anyone can start repaying.
Details here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/
Cheers! Makes sense now. 👍
Conversation was prompted as we were talking about a local village pub that was outwardly doing very well - always busy, loads of good reviews - suddenly closed on Sunday.
We paid ours back last year thankfully. We took the full amount in case we needed it, didn't need it and got shot of it again asap before temptation struck to spend it elsewhere.
With all of the huge increases in other costs I'm glad we're not repaying anything more back.
TS
Same position as Tartan. Took it as things were so uncertain at the time, bought a big bit of kit and paid it back before interest kicked in. I don’t like debt!