Bounce back loans: How a small business can benefit.
The year 2020 hasn’t been lucky for the world it has been the deadliest so far. Effected every arena of life, it has caused great distress and depression. Particularly in the employment sector, thousands of people lost their jobs and the stock market crashed due to the impact of Covid-19. In such difficult times of hardship, Governments are trying their best to facilitate people who are highly affected. There is a piece of good news for small businesses struggling through this difficult time of lockdown. The government is now offering them loans, known as the bounce back loan. The bounce-back loan is not like a typical personal loan. Bounce bank loan comes with great advantages for the small business and entrepreneurs so that they can save themselves from crashing and facing loss in their business. Here is a little guide on what Bounce Back Loan is and how your small business can benefit from it.
According to top business news, there are plenty of loan schemes available for the business owners but the bounce back loan scheme has been introduced particularly keeping in consideration the COVID 19 impact. Small businesses are the ones that are highly affected. Other types of loans are for those businesses that can afford to pay high-interest rates. This loan comes with great advantages. Since May 4, 2020, the Bounce Back loan has taken into effect. Self-employed entrepreneurs, small businesses, or limited company directors can apply for this scheme immediately. They will be granted with bounced back loans up to 50,000 pounds. Here is what you need to know about the Bounce Back loan, learned from top business news.
1. Available for entrepreneurs. Small business owners, self-employed individuals, and limited company directors.
2. If you fall under the category of the above-mentioned list, then you are most probably eligible to receive 2,000 pounds up to 50,000 pounds.
3. Interest rates start after 12 months from the date of receiving Bounce Back Loan. There will be no interest charge as well and no repayments up until 12 months from the date of receiving a loan.
4. After the 12 months' end, the banks will charge only 2.5% of interest rate which is less than other types of loans out there.
5. The loan can be repaid anytime up until its time of limitation that is 6 years. As there will be no interest charges above the starting point of 2.5% after the first 12 months of no interest charge fee.
6. To receive this loan from the government, your business must be licensed before March 1, 2020.
7. The best part is the Bounce Back Loan does not affect the other Government support advantages.
8. This loan will not affect your credit history either.
9. Not only that but it is also an unsecured loan which means that your assets are not in danger if you are unable to repay it on time.
Apply for Bounce Back Loan now in your nearest bank to support your business with a backbone before it’s too late.