Bounce Back Loan Repayment
If you took a bounce back loan and are struggling with cash flow, you have to read this…
Here is how you can potentially save OVER £17,000 over the next two years until you get back on your feet.
Say you took out a £50,000 loan, your monthly payments would be £747.93 for 72 months (Over two Years – £17,950.32).
There is a way to reduce this to just £40.53 per month over the next 24 months, a total cost of £972.72.
Here is how:
- Contact your bank and ask for the loan period to be extended from six years to ten years
- Just before repayments are due to start, ask the bank for an interest-only period for the first six months of the loan.
- Once the six months are up, ask the bank for a payment holiday for six months.
- Once those six months are up, ask for another six months interest-only period.
- Same as step 4 above
Saving of approx. £17,950.32 over 24 months.
The above method is based on guidelines from the government and can be the difference in keeping your business going.
However be mindful some banks use different processes, so the above may vary, so check with them first.
But having to pay £972 instead of £17,950 that is some serious chunk of change.
*Please read the comments for additional details
*The above figures are just approximate calculations
**Please note that you by using any of the above methods, you will be paying more in interest overall and the loan is extended for a longer period of time.
You should take professional advice in the first instance if your business is struggling.