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Personal finance

Can’t repay a COVID-19 Bounce Back Loan? Here’s what to do

Can’t repay a COVID-19 Bounce Back Loan? Here’s what to do, image of a shop reopening after COVID | Crunch

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    At the height of the Coronavirus Pandemic in 2020, the government introduced the Bounce Back Loan scheme for small businesses. Many Crunch customers have used the scheme to borrow money from banks and other lenders to support their businesses through lockdowns and as the UK economy recovers.

    Many businesses have found the road to recovery extremely tough, with trading adversely affected by multiple lockdowns and other restrictions introduced by the government. Many businesses have ceased to trade altogether, while others are carefully considering the options they have to continue to operate.

    If you’re the owner of a small business and are finding it difficult to repay your Bounce Back Loan, you may find information to help you on the Back British Business website.

    Back British Business believes there’s a legal route to challenge the terms of a Bounce Back Loan, and that businesses may be able to secure a reduction in the amount outstanding - or even a full write-off of the loan. Their services include contacting your lender on your behalf and escalating the matter to the Financial Ombudsman if necessary.

    If you’re considering your options, a visit to the Back British Business website may help you to decide. You can also call 020 8191 1601 to discuss your needs with a consultant or email on press@BackBritishBusiness.com. British Business has also published a list of frequently asked questions.

    Back British Business offer their services for a flat fee of £550 plus VAT. As a Crunch client, you can secure a £50 discount by using the code CRUNCH1. The discount is available until 31 January 2022.

    Other options available to you may include approaching your lender to discuss your repayment terms, or to review the financial sustainability of your business with a specialist.

    Crunch cannot provide advice or support if you decide your business should challenge the basis of a Bounce Back Loan. Ultimately, you must decide whether the legal route is right for your business if it’s struggling to repay a loan.