| Anyone else going for the £50k Bounce Back loan? 14:07 - May 4 with 5274 views | Lord_Lucan |
Barclays is crashing although my mate did his with Lloyds this morning
It's mental. £50k no interest for a year and then only 2.5% interest over 6 years if you don't pay it back!
No personal guarantee. Free money!
Ah Haaaaaaaaaaaaaaaaaaaaaa [Post edited 4 May 2020 14:07]
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| Anyone else going for the £50k Bounce Back loan? on 14:09 - May 4 with 5224 views | gainsboroughblue |
I am bounc- already bounced back. |  |
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| Anyone else going for the £50k Bounce Back loan? on 14:11 - May 4 with 5213 views | TractorWood |
| Anyone else going for the £50k Bounce Back loan? on 14:09 - May 4 by gainsboroughblue |
I am bounc- already bounced back. |
I'm bouncing back again |  |
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| Anyone else going for the £50k Bounce Back loan? on 14:13 - May 4 with 5203 views | footers |
You'll finally be able to get that Buck Rodgers toilet and extender table, Lucan. |  |
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| Anyone else going for the £50k Bounce Back loan? on 14:19 - May 4 with 5178 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 14:13 - May 4 by footers |
You'll finally be able to get that Buck Rodgers toilet and extender table, Lucan. |
You know what this room says to me Footers? | |
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| Anyone else going for the £50k Bounce Back loan? on 14:23 - May 4 with 5158 views | footers |
| Anyone else going for the £50k Bounce Back loan? on 14:19 - May 4 by Lord_Lucan |
You know what this room says to me Footers? |
Aqua? Quite fancy a glacier mint now... | |
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| Anyone else going for the £50k Bounce Back loan? on 14:30 - May 4 with 5136 views | StokieBlue |
So there isn't any collateral against them at all?
Thought there must be more to it:
Banks will chase borrowers who default, seeking to seize property or other assets.
If they cannot recover the money, they will approach the British Business Bank and activate the government guarantee.
SB |  |
| Avatar - IC410 - Tadpoles Nebula |
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| Anyone else going for the £50k Bounce Back loan? on 14:34 - May 4 with 5120 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 14:30 - May 4 by StokieBlue |
So there isn't any collateral against them at all?
Thought there must be more to it:
Banks will chase borrowers who default, seeking to seize property or other assets.
If they cannot recover the money, they will approach the British Business Bank and activate the government guarantee.
SB |
Zero guarantee.
Possibly banks might chase it for a bit but they cannot enforce a thing.
Edit
Under the scheme, lenders are not permitted to:
take any form of personal guarantee
take recovery action over a borrower’s personal assets (such as their main home or personal vehicle) [Post edited 4 May 2020 14:37]
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| Anyone else going for the £50k Bounce Back loan? on 14:40 - May 4 with 5087 views | StokieBlue |
| Anyone else going for the £50k Bounce Back loan? on 14:34 - May 4 by Lord_Lucan |
Zero guarantee.
Possibly banks might chase it for a bit but they cannot enforce a thing.
Edit
Under the scheme, lenders are not permitted to:
take any form of personal guarantee
take recovery action over a borrower’s personal assets (such as their main home or personal vehicle) [Post edited 4 May 2020 14:37]
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Whilst I fully understand small businesses need help if you are right (and your info disagrees with what I read on the FT and pasted) then this is essentially a 50k handout to all small businesses.
Surely your paste means they can take action against assets owned by the company?
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Anyone else going for the £50k Bounce Back loan? on 14:55 - May 4 with 5031 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 14:40 - May 4 by StokieBlue |
Whilst I fully understand small businesses need help if you are right (and your info disagrees with what I read on the FT and pasted) then this is essentially a 50k handout to all small businesses.
Surely your paste means they can take action against assets owned by the company?
SB |
I suppose they could take company assets but small businesses probably only have stock as assets and stock is worthless to a bank, that's why you can't generally borrow money on a stock debenture.
I guess they could take a forklift or whatever but will they really bother? I doubt it.
More likely many businesses will get the money and siphon it off before winding the company up. If for example the company was insolvent you could take the £50k and pay that as a wage over the year before winding the company up - or letting someone else wind it up. | |
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| Anyone else going for the £50k Bounce Back loan? on 14:59 - May 4 with 4998 views | StokieBlue |
| Anyone else going for the £50k Bounce Back loan? on 14:55 - May 4 by Lord_Lucan |
I suppose they could take company assets but small businesses probably only have stock as assets and stock is worthless to a bank, that's why you can't generally borrow money on a stock debenture.
I guess they could take a forklift or whatever but will they really bother? I doubt it.
More likely many businesses will get the money and siphon it off before winding the company up. If for example the company was insolvent you could take the £50k and pay that as a wage over the year before winding the company up - or letting someone else wind it up. |
Exactly.
The government were kind of screwed here. They originally only guaranteed 80% to cover this issue and after a huge outcry they are now guaranteeing 100% which can equate to essentially given the money away as you've pointed out.
I wonder how many people grasp what can be done with no collateral and whether it was good for the government to change the scheme in the way they have (according to your info).
SB | |
| Avatar - IC410 - Tadpoles Nebula |
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| Anyone else going for the £50k Bounce Back loan? on 15:02 - May 4 with 4980 views | Chutney |
| Anyone else going for the £50k Bounce Back loan? on 14:55 - May 4 by Lord_Lucan |
I suppose they could take company assets but small businesses probably only have stock as assets and stock is worthless to a bank, that's why you can't generally borrow money on a stock debenture.
I guess they could take a forklift or whatever but will they really bother? I doubt it.
More likely many businesses will get the money and siphon it off before winding the company up. If for example the company was insolvent you could take the £50k and pay that as a wage over the year before winding the company up - or letting someone else wind it up. |
Yes banks will have the right to chase borrowers who default, seizing property or other assets but as you say, given the debt is guaranteed by the government I doubt they would bother. There's no real incentive for them to do so.
There are a few criteria though, so I wouldn't say it's a handout. You have to be able to demonstrate you've been impacted by Coronavirus (shouldn't be hard for most businesses) and can't have been in difficulty at 31st December 2019. The loan is capped at 25% of turnover, up to a max of £50k.
Very much open to abuse though. As you say, there's little stopping someone taking the loan, extracting the cash from their business and then winding up at a later date before the year is up. It would represent something of a bonus if your business is going south anyway. Let's see how many companies fold and they miraculously new business open in their place come the end of 2020. |  | | |
| Anyone else going for the £50k Bounce Back loan? on 15:06 - May 4 with 4956 views | Keno |
| Anyone else going for the £50k Bounce Back loan? on 14:59 - May 4 by StokieBlue |
Exactly.
The government were kind of screwed here. They originally only guaranteed 80% to cover this issue and after a huge outcry they are now guaranteeing 100% which can equate to essentially given the money away as you've pointed out.
I wonder how many people grasp what can be done with no collateral and whether it was good for the government to change the scheme in the way they have (according to your info).
SB |
I guess an issue might arise where although the bank hasn't got a guarantee from a company director under the terms of most directorships directors are personally liable for the debts of the company
in other words they might not get away with it that easily |  |
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| Anyone else going for the £50k Bounce Back loan? on 15:06 - May 4 with 4957 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 15:02 - May 4 by Chutney |
Yes banks will have the right to chase borrowers who default, seizing property or other assets but as you say, given the debt is guaranteed by the government I doubt they would bother. There's no real incentive for them to do so.
There are a few criteria though, so I wouldn't say it's a handout. You have to be able to demonstrate you've been impacted by Coronavirus (shouldn't be hard for most businesses) and can't have been in difficulty at 31st December 2019. The loan is capped at 25% of turnover, up to a max of £50k.
Very much open to abuse though. As you say, there's little stopping someone taking the loan, extracting the cash from their business and then winding up at a later date before the year is up. It would represent something of a bonus if your business is going south anyway. Let's see how many companies fold and they miraculously new business open in their place come the end of 2020. |
Technically yes to all but you haven't got to prove that you have been impacted and you don't even have to show them proof of turnover.
They may check the turnover, I don't know but I doubt they will have time as they are swift turnarounds.
Basically just tick yes or no and then press enter! | |
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| Anyone else going for the £50k Bounce Back loan? on 15:09 - May 4 with 4946 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 15:06 - May 4 by Keno |
I guess an issue might arise where although the bank hasn't got a guarantee from a company director under the terms of most directorships directors are personally liable for the debts of the company
in other words they might not get away with it that easily |
Technically yes, in normal circumstances the bank could give you grief even if they have no PG (unusual these days) but as these are government backed the money is just handed back to the bank by the government. It is clearly stipulated. | |
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| Anyone else going for the £50k Bounce Back loan? on 15:50 - May 4 with 4839 views | hampstead_blue |
Get it, invest it, pay it back, take the profits....... |  |
| Assumption is to make an ass out of you and me.
Those who assume they know you, when they don't are just guessing.
Those who assume and insist they know are daft and in denial.
Those who assume, insist, and deny the truth are plain stupid.
Those who assume, insist, deny the truth and tell YOU they know you (when they don't) have an IQ in the range of 35-49.
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| Anyone else going for the £50k Bounce Back loan? on 15:55 - May 4 with 4824 views | uefacup81 |
Don't shout too loudly about getting one - to the untrained eye it could look like you haven't bounced back. |  |
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| Anyone else going for the £50k Bounce Back loan? on 16:33 - May 4 with 4745 views | Nthsuffolkblue |
As a matter of interest, if interest rates become 0 or lower and inflation becomes massively negative, does £50K borrowing actually become effectively much more money to pay back even without interest on it?
I think it is a very good thing that there can be a boost to get companies through this very difficult time but we should all know by now that whatever looks a bargain often has an unforeseen catch. |  |
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| Anyone else going for the £50k Bounce Back loan? on 17:00 - May 4 with 4704 views | Lord_Lucan |
| Anyone else going for the £50k Bounce Back loan? on 16:33 - May 4 by Nthsuffolkblue |
As a matter of interest, if interest rates become 0 or lower and inflation becomes massively negative, does £50K borrowing actually become effectively much more money to pay back even without interest on it?
I think it is a very good thing that there can be a boost to get companies through this very difficult time but we should all know by now that whatever looks a bargain often has an unforeseen catch. |
Not really
Even with a Bank of England interest rate at 0.25% a High St bank would want circa 10% for a £50k loan - secured! | |
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| Anyone else going for the £50k Bounce Back loan? on 17:14 - May 5 with 4285 views | Nthsuffolkblue |
| Anyone else going for the £50k Bounce Back loan? on 17:00 - May 4 by Lord_Lucan |
Not really
Even with a Bank of England interest rate at 0.25% a High St bank would want circa 10% for a £50k loan - secured! |
I think you miss my point.
It is the deflation aspect.
If £50K can buy you so much today and you have to pay back £50K in 6 years but in 6 years £50K can only buy you what £30K could today you are actually paying back a lot more.
I honestly don't expect that sort of deflation over that sort of period of time but economics is a funny old thing. | |
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