What is the Bounce Back Loan (BBL) scheme?

In response to the covid pandemic, the UK government launched Bounce Back Loan scheme (BBL) in May 2020 to offer loans to small businesses: LTD companies, self-employed and sole traders.

The BBL scheme offered very favourable terms for loans ranging from £2,000 to £50,000 with zero percent interest in the first year and rates of 2.5 percent fixed for up to six years.

In total, 55 percent of British small and medium businesses accepted the loan, totalling 1.6 million businesses and a sum of £47bn lent out in total through a number of participating banks and lenders.

What is the “Pay As You Grow” scheme?

“Pay As You Grow” scheme helps UK businesses that have taken out a Bounce Back Loan (BBL) to manage their cashflow and loan repayments. The scheme enables businesses to:

• Request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%.
• Reduce their monthly repayments for six months by paying interest only.
• Take a repayment holiday for up to six months.

You would need to contact your BBL provider to apply for the “Pay As You Grow” scheme.

What is the Bounce Back Loan (BBL) Repayment Plan?

We can help you to set up a BBL repayment plan through negotiating with your BBL lender affordable monthly repayments your business can realistically make. The monthly repayments are based on the affordability and may be lower than your contractual BBL repayments.

For example (for illustration purposes):

On the BBL of £50,000, contractual monthly repayments are set at £938 per month during the original term of 6 years.

If you extend the repayment term to 10 years through the “Pay As You Grow” scheme, your repayments will be around £567 per month.

With our BBL repayment plan, your repayments could be reduced to £110 per month or even lower, depending on your business affordability. We will also negotiate the freeze on interest and penalty charges. However, we cannot guarantee that all lenders will accept this and your BBL term will be extended.

Benefits of the BBL Repayment Plan:

• We will negotiate with your BBL creditors and their representatives, such as debt collectors, about reduced loan repayments
• We will negotiate with your BBL creditors about the reduction or freeze of interest and penalty charges
• You will pay what your business can afford after we have put together your business income and expenses projections
• You will make one monthly repayment directly to the BBL provider or their representatives
• You will make your regular monthly payments to cover your day-to-day trading expenses
• We will review your BBL Repayment Plan regularly (every six-twelve months) to make sure you’re paying what your business can afford.
• Making one regular monthly repayment allows you better control over your business finances.

Risks of the BBL Repayment Plan:

• The BBL provider may still contact you before the BBL Repayment Plan is agreed.
• Many BBL providers will agree to reduce or freeze interest and charges, but
  they don’t have to.
• If the BBL provider continues adding interest and charges, this could increase
  the total amount repayable.
• BBL providers don’t have to agree to the BBL Repayment Plan, but they must accept any repayments you make to reduce the debt.
• BBL providers may still take further legal action against your business, such
  as court proceedings to recover debt.
• Reduced BBL repayments may lead to a longer arrangement term and could have a negative impact on your business’ credit score.

What banks do we work with in regards to the BBL Repayment Plan?

We work with all UK BBL providers in regards to the BBL Repayment Plan.

How much does it cost to set up a BBL Repayment Plan?

Our fees for setting up the BBL Repayment Plan are set from £980, depending on the case complexity.

Clients’ testimonials:

About us:

Since 2005, Tower Consulting Services Ltd has been assisting sole traders, self-employed entrepreneurs, and directors of LTD companies in legally reducing and writing off their personal and business debts.

Our clients benefit from professional guidance on effectively managing their debts, including services for debt reduction and write off, bankruptcy, LTD company liquidation, and Bounce Back Loan (BBL) reduction service. Additionally, we offer representation for our clients in negotiations with banks and debt collectors.

Please note: Information in this guide is for general and illustration purposes only and does not constitute legal or professional advice. If you require advice based on your circumstances, please contact us to arrange a consultation.

To book a consultation, write to us on WhatsApp +44 7868 778756 or email info@insolbaltika.co.uk