Bounce Back loans – have you got yours?

[James Batchelor 0]

Hi everyone, we're running a story about bounce back loans. A few dealers have told us they're still waiting for the bounce back loans they applied for months ago. Are you one of them?

[BHM 994]

You might get a better response in the private lounge rather than everyone discussing their business practices for all to see.

[Anglo9 26]

I bank with and applied through Barclays , Money was in my account within 12 hours .

 

[Mojo121 229]

Is anyone not taking one? Would be interested to hear the reasons?

[justina3 518]

3 hours ago, Mojo121 said:

Is anyone not taking one? Would be interested to hear the reasons?

I have three different businesses one benefited from a cash injection the other two didnt need anything pointless borrowing for the sake of borrowing. 

 

[David Horgan 564]

Cant see the point of a business taking a loan if they cant make it pay , surely a business would have to be able to buy extra stock and sell it to earn the extra money .

Many business types  are not in the fortunate spot are they , take a hairdresser , gym etc they cant use extra cash sensibly 

Car traders have the opportunity but only if they have the space and advertising capacity for extra stock . 

Plenty of people near us have had the money and its been spent on various items from Quads , Caravans , American muscle cars , Motor bikes , New Speed boats , that's just what i can see  not going to earn extra profit from those items 

Going to be some funny happenings next year when pay back starts isn't there , 

Great opportunity if they make it work though 

[justina3 518]

I heard some comments floating around that the banks expect 40 % plus of borrowers will not be able to pay the loan back, also a shocking figure of 35% of bbl loans paid out under later inspection where to dormant companies with zero activity on there account.

 

 

[trade vet 703]

2 hours ago, justina3 said:

I heard some comments floating around that the banks expect 40 % plus of borrowers will not be able to pay the loan back, also a shocking figure of 35% of bbl loans paid out under later inspection where to dormant companies with zero activity on there account.

 

 

I don’t think the taxpayer will be liable for bank lending errors.They will know who they have issued loans to and those who receive them with their connected parties will be made personally liable for their repayment. I can imagine the banks will be charging those who default penal interest rates and will not think twice about snatching money back from the wrong people.You know what they are like,they will probably profit from the defaults.

[justina3 518]

14 hours ago, trade vet said:

I don’t think the taxpayer will be liable for bank lending errors.They will know who they have issued loans to and those who receive them with their connected parties will be made personally liable for their repayment. I can imagine the banks will be charging those who default penal interest rates and will not think twice about snatching money back from the wrong people.You know what they are like,they will probably profit from the defaults.

There lies the problem there not bank errors the bank followed the relaxed lending criteria from the government during the second wave of hand outs, and if you consider a business not paying back a loan at 2.5% there not going to be bothered if the bank ups it to a default rate of what ever the defaulted rate may be if they do not have the good conscience or business sense to pay a cheap loan back doubling the interest is hardly going to incentivise them to do so. 

The banks are also not going to be that bothered about chasing for the money they will of course send out the normal run of the mill letters and maybe the odd court order but after that where is the sense in them spending additional thousands when they can easily turn to the government for the loan to be settled in full without any additional costs to them. 

 

[Mojo121 229]

4 hours ago, justina3 said:

There lies the problem there not bank errors the bank followed the relaxed lending criteria from the government during the second wave of hand outs, and if you consider a business not paying back a loan at 2.5% there not going to be bothered if the bank ups it to a default rate of what ever the defaulted rate may be if they do not have the good conscience or business sense to pay a cheap loan back doubling the interest is hardly going to incentivise them to do so. 

The banks are also not going to be that bothered about chasing for the money they will of course send out the normal run of the mill letters and maybe the odd court order but after that where is the sense in them spending additional thousands when they can easily turn to the government for the loan to be settled in full without any additional costs to them. 

 

Exactly - all this is a scandal waiting to happen and the good old taxpayer ends up taking the hit while the deficit keeps climbing

[It's me 615]

8 hours ago, Mojo121 said:

Exactly - all this is a scandal waiting to happen and the good old taxpayer ends up taking the hit while the deficit keeps climbing

hmrc are getting power next week to tax at 100% anyone fiddling,it will be on the statute books within 30 days,the time left for anyone naughty to confess and repay,the clocks ticking

so some good news to those perverting the market

[umesh 336]

On 7/16/2020 at 4:05 PM, David Horgan said:

Cant see the point of a business taking a loan if they cant make it pay , surely a business would have to be able to buy extra stock and sell it to earn the extra money .

Many business types  are not in the fortunate spot are they , take a hairdresser , gym etc they cant use extra cash sensibly 

Car traders have the opportunity but only if they have the space and advertising capacity for extra stock . 

Plenty of people near us have had the money and its been spent on various items from Quads , Caravans , American muscle cars , Motor bikes , New Speed boats , that's just what i can see  not going to earn extra profit from those items 

Going to be some funny happenings next year when pay back starts isn't there , 

Great opportunity if they make it work though 

Spot on Mr H ! 100%

Hope all is well with you.

[CCC 31]

I’m watching this with interest. HMRC very wary of the problem and now trying to work out the solution.

Last idea I read was making it like student loans, you pay back when profits allow. Given that profit is a fudgeable number then they’ll have to audit books to be on top of it properly (eg exclude director and family member salaries)

Whatever they do then they need to be harsh early on to get the message across. 

[justina3 518]

16 minutes ago, CCC said:

I’m watching this with interest. HMRC very wary of the problem and now trying to work out the solution.

Last idea I read was making it like student loans, you pay back when profits allow. Given that profit is a fudgeable number then they’ll have to audit books to be on top of it properly (eg exclude director and family member salaries)

Whatever they do then they need to be harsh early on to get the message across. 

This is what MTD is aiming for to avoid physical audits. 

13 hours ago, It's me said:

hmrc are getting power next week to tax at 100% anyone fiddling,it will be on the statute books within 30 days,the time left for anyone naughty to confess and repay,the clocks ticking

so some good news to those perverting the market

have you got a link to this info ?

[David Horgan 564]

51 minutes ago, umesh said:

Hope all is well with you.

All good here Umesh , same your way I hope .