Bounce Back loans have been a real relief! Many clients have now applied successfully for a loan of between £2,000 and £50,000 and funds are dropping into bank accounts across the country.
They’ve lived up to their billing as easy to apply for, though the payout process hasn’t been quite as swift as we’d hoped.
That said, even with last week’s Bank Holiday in the middle of it, we’re hearing of applications being completed with funds in bank accounts within an average of 5 days, which is phenomenal when you consider the volume of applications the banks are dealing with.
The latest news is as follows:
- Metro Bank still haven’t come on stream as a lender as yet, though they are still expected to do so.
- HSBC are accepting applications from new customers, and remain one of the only lenders who are.
- Starling Bank have been approved, and may be a good option to consider if your current bank isn’t on the panel yet. The process to set up a new account with Starling is fully digital, and very speedy. From there you can apply for your Bounce Back Loan.
- Be careful if you are considering applying to the Co-op. We’ve seen today that their small print says that you can’t pay dividends whilst any of the loan amount is outstanding. This could mean Directors have to be paid a salary, costing a large amount in tax.
There is no doubt that Bounce Back Loans are a great option if you are looking for funding in the current environment. Do give it careful thought though, as the funds still need to be repaid. Be sure that you have a plan to make good use of the cash, OR that you put it into a separate account until you do.
If you’re unsure of whether to borrow or not, please get in touch. We’re happy to chat through your plans with you and help if we can.