What if I have already taken a Bounce Back Loan, a Coronavirus Business Interruption Loan or a Recovery Loan and I’m looking for additional funding?
If you’re looking to borrow additional funds, then lenders will take into account the repayments you need to make on those (and any other) debts to ensure you can afford to repay the loans you are taking on.
With this in mind you there are a number of different types of finance that may help you find the money you need, as these solutions are designed to help you with balancing repayments including:
Pay As You Grow (PAYG)
If you currently have a Bounce Back Loan (BBL) you can speak to your lending provider about Pay As You Grow (PAYG) options which can provide you with flexibility and more time to repay your loan.
Merchant Cash Advance (MCA)
Funding provided through an MCA product, typically for retail type businesses, is repaid by paying the lender a percentage of your card and online takings, as they come in, so that your repayments are balanced with your income
With this solution you can borrow money against invoices you have raised with your customers, and the debt is then repaid as those invoices are paid to you
Flexible Credit Lines
These solutions are like an overdraft facility and allow you to repay the money borrowed in short timeframes if you are able to. This reduces the overall cost of the funding
Business Credit Cards
Using these solutions can give you up to 56 days of interest free credit, if you are able to repay the money used in full.
As you look for additional finance you should also be aware that the BBL, CBIL and RL schemes were established by the government in a time of crisis. They provided support to huge numbers of small businesses, in unprecedented times. The schemes gave the lender a government-backed guarantee and the assessment criteria was more lenient (particularly for BBLS), to allow businesses to access finance promptly during the coronavirus outbreak. For new funding requests, you might expect to see: