Paying off Finance with bounce back loan?

[aspenarb]

I think all this deferred interest on loans, deferred rates, rent ,VAT and tax  is going to cause an avalanche of bankruptcies in the new year. Its allowing firms that would normally go pop right now to basically trade while insolvent for another six months, some of these will rack up monumental debt and legally just walk away from it, god help the pension pot.

 

Bob

[monkeybusiness]

8 minutes ago, aspenarb said:

I think all this deferred interest on loans, deferred rates, rent ,VAT and tax  is going to cause an avalanche of bankruptcies in the new year. Its allowing firms that would normally go pop right now to basically trade while insolvent for another six months, some of these will rack up monumental debt and legally just walk away from it, god help the pension pot.

 

Bob

Furlough scheme is doing similar, and also deferring mass redundancies imo.

[waterbuoy]

41 minutes ago, aspenarb said:

I think all this deferred interest on loans, deferred rates, rent ,VAT and tax  is going to cause an avalanche of bankruptcies in the new year. Its allowing firms that would normally go pop right now to basically trade while insolvent for another six months, some of these will rack up monumental debt and legally just walk away from it, god help the pension pot.

 

Bob

Whilst I agree with most of what you have said, in the case of the BBL (ie the subject of this thread!) I think they have actually been quite sensible - max 25% of turnover or £50k, whichever is the lower. 

 

We have taken out one for our charter business which is unable to operate at all this season due to cancellations and the continuing restrictions etc.  The 12 month 'payment free' period will allow us to keep trading and pay for most of our fixed outgoings whilst deciding which of the boats to sell rather than being forced into a fire-sale at a time when the market is likely to be awash with similar vessels.

 

Some of the businesses will do as you say, but others will manage to trade through and come out the other side.

Edited May 18, 2020 by waterbuoy

[benedmonds]

£50k deposited in our account today.. Scary how easy the process was.. 

[Stubby]

12 minutes ago, benedmonds said:

£50k deposited in our account today.. Scary how easy the process was.. 

Beer and curry ? ?

[william127]

2 hours ago, benedmonds said:

£50k deposited in our account today.. Scary how easy the process was.. 

Thats what I thought! 

I saw the money in my Lloyd’s account 36 hours after applying, could have been in within 12 hours as I didn’t look sooner.

 

Ive spent it on a tractor, which I think is is pretty much the point of it- I’ve borrowed some money that i can afford to pay back but probably wouldn’t have been able to borrow otherwise, and passed that money on , keeping the wheels turning ??

[IronMike]

I think you’ve done the right thing, fair play.

 

I think one of the key things to remember (and I’m sure everyone does) is that the money isn’t free as such, and must be repaid. But my god, it’s the cheapest money you’ll ever get, and the easiest. Imagine applying for a loan like this 6 months ago? You’d have had to jump through every possible hoop whilst explaining the farthest of far farts!

[Mark J]

4 hours ago, benedmonds said:

£50k deposited in our account today.. Scary how easy the process was.. 

Imagine how the bankers felt albout their bailouts.

[Steve Bullman]

https://www.dailymail.co.uk/money/markets/article-9154527/Banks-charge-35-emergency-loans-Crippling-rates-loom.html#comments

[kevinjohnsonmbe]

20 minutes ago, Steve Bullman said:

Banks to charge 35% on emergency loans: Crippling rates loom | Daily Mail Online

WWW.DAILYMAIL.CO.UK

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Data seen by us shows lenders have used the Chancellor's flagship £19billion loan fund to saddle...

 

I had to look “usurious” up 😂

 

Never has been, never will be any such thing as a free lunch.