So a lot of you may have actually got bounce back loans over the last year and now we’re coming up to a point where you may have to start repaying them and paying the interest on them. You may well be thinking, is now a good time to actually just pay the whole loan back and not worry about it? So before you make that decision I just wanted to film this quick video to talk through some of the options and help you understand how the bounce back loan works. And actually some of the benefits.
Firstly, it’s probably the easiest funding you’ll ever get in your business and probably at the lowest rate. Before Covid the kind of interest rates we were seeing on business finance were between 10% to 15% and the owners of these businesses then had to go through a ridiculously tough application process where often they even had to get personal guarantees, which is something the bounce back loan didn’t make you do. So in terms of a bounce back loan, the rate is low. It’s the easiest application you ever did. So my thoughts on it are before you decide whether or not to pay this bounce back loan back, start thinking about whether you’ll actually need funding next year or the year after. Because the last thing you want to do is pay this loan back and then have to reapply for funding at a much higher rate through a much tougher process down the line. And even if you have committed to paying things off in your business, then maybe think about what you should pay off first. Do you have overdrafts? Do you have credit cards in your business that are being charged interest at a much higher rate? Wouldn’t you rather pay them off before you pay off this bounce back loan?
So one thing I’ve always found is business owners that invest in their business generate a return and that return can be tenfold in terms of what they actually invest in the first place. So if you’ve got funding at 2.5% a year and you think or you know you can invest it in growth through marketing, new staff, new technologies and equipment, then why not do it because you’ll probably double the size of your business by doing that. So my thoughts on it are, if you aren’t quite sure how to grow your business, then why not get in touch with us. We’ve got a AAA system called Apex. It’s our signature system which is designed to help you get your business working for you rather than the other way around. So get in touch, get yourself booked in for a game plan session. We’ll show you exactly how our Apex system works. Thanks.