The Bounce Back Loan Scheme (BBLS) was designed to support businesses during the pandemic. With £47 billion handed out to businesses, the scheme was designed to provide a financial cushion during tough times.
However, shocking figures below show that many businesses are finding it difficult to make repayments and are in need of professional help.
The Harsh Reality of Bounce Back Loan Troubles: Shocking Figures
● As of November 2023, total payments not being made on schedule accounts for 40%
of the £47 billion.
● As of May 2023, over 145,000 BBLS loans were overdue.
● The average overdue loan sits at £26,571—a significant sum that poses a real
threat to the survival of many small and medium enterprises (SMEs).
● The figure of £1.1 billion flagged by banks as suspected fraud is estimated to rise
significantly.
● Approximately 66% of director disqualifications are currently related to the
misuse of pandemic financial support, particularly the BBLS.
● Just £1.2 billion has been paid out to banks under the BBLS Guarantee
Agreement. The guarantee does not automatically cover loans made as a result of
fraud or misrepresentation by the borrower. It expects the banks to recover money
themselves but will provide assistance where possible.
The Road to Recovery: With The Authorities Closing In
For directors and business owners caught in the fallout of BBLS, finding a way forward can seem like trying to drive home after crashing your car. With the Insolvency Service and HMRC intensifying efforts to address misuse of the scheme, the importance of seeking professional advice and assistance has skyrocketed.
Overcoming the problems caused by BBLS repayments, defaults, and the threat of personal liability requires expert knowledge and guidance. For businesses at the brink of default or those under legal scrutiny, professional advice is not just helpful—it’s essential.
Take Action Today: Don’t Face It Alone
If you’re battling with bounce back loan repayments, accusations of misuse, or just uncertain about what to do next, remember, you’re not alone. Moreover, I&L Advisory is here to give you sound advice, offering expertise and understanding. Our team is experienced in these matters and keen to help you bounce back from this challenging set-back.
Call us now on 020 7962 8456.