Paying off Finance with bounce back loan?

[skyhuck]

3 hours ago, eggsarascal said:

I don't begrudge anyone getting a loan, what I do begrudge is folk taking the loan when it's not needed, or to pay other loans because the money is cheap, it's not what it's meant for, and we'll be paying it back, not the Government.

The way I see it is the banks are the only ones loosing out due to BBL's.

 They were asked to help businesses that were struggling due to covid, the government offered to stand 80% warrantee for the loans. The banks dragged their feet, offered very poor terms and were very picky about who they would lend too. 

 So the government stepped up and offered these BBL's, if loads of people take them. settle their existing finance, pay nothing for 12months, then lower payments for the 6 years, they are in a better position to ride out the inevitable recession.

 The banks are going to loose millions in interest, but servers the right!

[eggsarascal]

6 minutes ago, doobin said:

We're ALL about to get royally shafted for years down the line. I'm just availing myself of the free lube, you might as well do the same.

 

I bet there's a few on here got themselves a liar loan- otherwise known as a self cert mortgage. My generation have been paying for that for years through unnaffordable house prices and steeply increasing rents, coupled with mortgages for self employed being nigh on impossible to attain. My turn to self certify (my turnover!)

Yes, I know we are going to get rogerd, but the more folk who grab unnessasary money will make the problem for all of us worse..have i got it all wrong?

[trigger_andy]

25 minutes ago, eggsarascal said:

Yes, I know we are going to get rogerd, but the more folk who grab unnessasary money will make the problem for all of us worse..have i got it all wrong?

Im pleasantly surprised you're taking this stance. I have to agree with you.

[Mesterh]

Im guessing it will be small potatoes compared to the Branson's of the world who will suck 100's of millions/billions out of the pot.

You know the likes, those ferreting their earnings into offshore accounts to save paying tax.

If it helps keep us small folks afloat then go for it.

[benedmonds]

1 hour ago, eggsarascal said:

I don't begrudge anyone getting a loan, what I do begrudge is folk taking the loan when it's not needed, or to pay other loans because the money is cheap, it's not what it's meant for, and we'll be paying it back, not the Government.

Paying off other loans with it is a way to reduce costs and therefore better help you through these challenging times. So perfectly valid. 

19 minutes ago, skyhuck said:

The way I see it is the banks are the only ones loosing out due to BBL's.

 The banks are going to loose millions in interest, but servers the right!

Finance companies are going to lose a fair few customers too.

There will as always be loads on unintended consequences..

We have built our business with very low levels of debt and that has meant we were in a good position to survive the current disaster. I have gone for the maximum we could get which once we pay off the current finance on the chipper will leave us with a decent chunk that we could use or just sit on..

[donnk]

Lets not forget, if your ltd co took the max 50k there is absolutley nothing stopping you doing a pre-pack administration down the line if times get tough which will wipe it out. As its not secured sod all they can do.

 

Pre Pack Administration Process Guide and Procedures

WWW.REALBUSINESSRESCUE.CO.UK

---

Pre pack administration is an insolvency procedure in which assets are pre-sold before an administrator is appointed to...

 

 

[Sutton]

3 hours ago, skyhuck said:

The way I see it is the banks are the only ones loosing out due to BBL's.

 They were asked to help businesses that were struggling due to covid, the government offered to stand 80% warrantee for the loans. The banks dragged their feet, offered very poor terms and were very picky about who they would lend too. 

 So the government stepped up and offered these BBL's, if loads of people take them. settle their existing finance, pay nothing for 12months, then lower payments for the 6 years, they are in a better position to ride out the inevitable recession.

 The banks are going to loose millions in interest, but servers the right!

Agreed. 'cept 1 thing. Inflation. If that goes up then generally so do interest rates. That might be the sting in the tail (or small print)

[Mesterh]

16 minutes ago, Sutton said:

Agreed. 'cept 1 thing. Inflation. If that goes up then generally so do interest rates. That might be the sting in the tail (or small print)

From what I can see it's fixed at 2.5% for the term. Can't see any mention of base rate interest either.

[skyhuck]

31 minutes ago, Sutton said:

Agreed. 'cept 1 thing. Inflation. If that goes up then generally so do interest rates. That might be the sting in the tail (or small print)

Except BBL's are "2.5% fixed rate"

I know lots of people keep saying its above base, but it's not. Sometimes wonder where people get their info from and if they even read paper work before they sign it?

 

[Sutton]

50 minutes ago, skyhuck said:

Except BBL's are "2.5% fixed rate"

I know lots of people keep saying its above base, but it's not. Sometimes wonder where people get their info from and if they even read paper work before they sign it?

 

True. That'll teach me to believe what I read on here without checking elsewhere. Still none of us wants inflation as, in effect, we'll have less coin in our pockets and as I remember it, the more cash swilling about leads to one thing...