Business owners who panicked into taking out a Bounce Back loan when the UK went into lockdown due to Covid-19 can ask for more money to secure their future.
FFP Solutions has worked with companies to access up to £ 250,000 through the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
A champion broker of the fundraising circle, the St Asaph-based finance firm quickly released vital funding, and says those who initially took out a Bounce Back loan – worth up to 25% of turnover of the previous year or £ 50,000 – may claim a higher amount to cover lost income.
Banks have been criticized for the pace at which they release funds under CLBILS. Worried bosses therefore opted for the lower amount as the process was considered easier and in many cases the money was in your account the next day.
FFP Solutions Director Richard Lloyd-Jones revealed that companies that have taken this route are eligible for a CLBILS loan but are expected to use part of it to pay off their Bounce Back loan.
“This early uncertainty has resulted in many sleepless nights, a lot of panic and distress for many companies”, Richard said.
“Because it was uncharted territory, people were asking the Bounce Back Loan Program (BBLS) to cover a deficit, and no one really knew how long it was going to last and how much money would be wasted.
“As a result, many owners and directors who took the £ 50,000 now realize that was far from enough, so we are advising them and helping them get back on track.”
“We are now in the position that anyone who applied for the Bounce Back loan can go to CLBILS, and as a Funding Circle broker we are able to handle this for them.
“We see this often and are happy to help, because now is the business need it most after a tough time for everyone. “
CLBILS ends in October but is expected to be extended to meet demand and the impact on a myriad of sectors across the country.
Companies will not be required to make refunds for 12 months; there are also no fees to be paid by the company to take out the loan and no interest or principal repayments are made during the first 12 months.
All loans will have an APR (Annual Percentage Rate) of less than 9% and businesses can borrow between £ 50,001 and £ 250,000 over a period of two to five years. No personal guarantee is required.
“If you are a business that has been affected by the coronavirus, please contact us. “
For more information and to speak to a member of the FFP Solutions team, call the toll free 0800 783 3117 or visit the website: www.ffp-solutions.co.uk/
Visit www.gov.uk to learn more about the Coronavirus Large Business Interruption Loan Program (CLBILS).