Can’t Repay Bounce Back Loan? Here’s What You Can Do

The Bounce Back Loan Scheme was a government-backed loan program that was designed to help businesses stay afloat during the COVID-19 pandemic. The scheme offered loans of up to £50,000, at an interest rate of 2.5%.

However, if you’re struggling to repay your Bounce Back Loan, you’re not alone. According to a recent survey, 1 in 5 businesses that took out a Bounce Back Loan are now struggling to make their repayments.

In this blog post, we’ll discuss what happens if you can’t repay your Bounce Back Loan, and what you can do about it. We’ll also provide some tips on how to avoid defaulting on your loan.

What Happens if You Can’t Repay Your Bounce Back Loan?

If you’re struggling to repay your Bounce Back Loan, there are a few things that can happen. First, your lender may start to charge you late payment fees. These fees can be expensive, so it’s important to make your payments on time.

If you continue to miss payments, your lender may eventually start to take action to recover the debt. This could include sending you a letter of demand, or even taking you to court.

If you’re taken to court, and you’re found to be in default, the court could order you to pay the debt in full. If you’re unable to pay the debt in full, the court could also order you to sell assets, or even declare bankruptcy.

What Can You Do if You Can’t Repay Your Bounce Back Loan?

If you’re struggling to repay your Bounce Back Loan, there are a few things you can do. First, you should contact your lender and explain your situation. They may be willing to work with you to create a repayment plan that you can afford.

You may also be able to get help from debt management services. These services can help you negotiate with your creditors and develop a debt repayment plan.

In some cases, you may also be able to get help from the government. The government offers a number of programs that can help people who are struggling with debt.

Here are some of the government programs that can help you if you’re struggling to repay your Bounce Back Loan:
  • The Debt Repayment Plan: This program allows you to repay your debt over a longer period of time, with lower monthly payments.
  • The Individual Voluntary Arrangement (IVA): This is a formal agreement between you and your creditors that sets out how you will repay your debt.
  • The Debt Relief Order (DRO): This is a government scheme that can help you write off some of your debts if you meet certain criteria.

Tips on How to Avoid Defaulting on Your Bounce Back Loan

Here are a few tips on how to avoid defaulting on your Bounce Back Loan:

  • Make sure you understand the terms of your loan before you take it out.
  • Make your payments on time, even if it’s just a small amount.
  • Contact your lender if you’re struggling to make your payments.
  • Get help from a debt counseling service if you need it.

Conclusion

If you’re struggling to repay your Bounce Back Loan, don’t panic. There are a number of things you can do to get help. By taking action early, you can avoid defaulting on your loan and protect your financial future.

Additional Tips

  • If you are a sole trader, struggling to repay your Bounce Back Loan, it’s important to be proactive. Don’t wait until you’re in default to seek help.
  • Be honest with your lender about your financial situation. They’re more likely to be willing to work with you if they know what you’re dealing with.
  • Don’t be afraid to ask for help from a debt management service. These services can provide you with free and confidential advice.

Acme Credit Consultants is a debt management company that can help you if you’re struggling to repay your Bounce Back Loan. They can negotiate with your lender on your behalf to get a lower interest rate or repayment terms. They can also help you create a budget and track your progress.

If you’re considering using a debt management company, it’s important to do your research and choose one that is reputable and has a good track record. You should also be aware that there are some fees associated with using a debt management company, so you’ll need to make sure that the benefits outweigh the costs.