Bounce Back Loans and CBILS

Find out where you stand if you’re having trouble paying your Bounce Back Loan or CBILS

Find out how we can help, our initial consultations are free.

If you’re struggling to repay your bounce back loan, seek professional advice now to minimise risk and personal liability.

Speak in confidence with one of our specialist advisors and we’ll assess the following:

Will the Pay As You Grow (PAYG) scheme help?

This provides the option to postpone repayments for six months or increase the term of the Bounce Back Loan from six to ten years or you can request to make interest-only payments for the coming six months.

Other options to free up cash flow include a Time to Pay Arrangement with HMRC

The likelihood is you are not just struggling with repaying your bounce back loan and a TTP arrangement would be one option to help ease cash flow.

Is your company insolvent?

This is the real question to be asked. If you cannot repay your Bounce Back Loan then there is a every possibility that your company is insolvent. If this is the case you must take action to prevent wrongful trading.

Book your free Bounce Back Loan consultation

What is a Bounce Back Loan and how does it operate?

Bounce Back Loans were offered by the Government to small businesses where funding was required due to the difficulties of the Coronavirus pandemic. Amounts of between £2,000 and £50,000 could be borrowed.

The loans were interest free for the first 12 months and lenders were provided with a 100% Government backed guarantee. This meant that lenders were not able to request personal guarantees on these loans.

Directors of limited companies are therefore not personally liable for the repaymant of the loans as long as they have acted reasonably and responsibly.

The loans could be used for purposes to help the company survive and include aspects such as:

  • Staff wages, including those of Directors (but not dividends if there are no profits)
  • Normal business expenses or overheads such as phone and electricity bills
  • Rent and business rates
  • Refinancing of other business debts to lower interest costs


Book your free Bounce Back Loan consultation here.

If you're worried about any aspect of your Bounce Back Loan then take professional advice now

Find out how we can help, our initial consultations are free.

Are you worried about misuse of, or a falsely applied for loan?

Evidence of misuse, or the fraudulent application of a Bounce Back Loan.

Directors will not normally be personally liable for the repayment of a Bounce Back Loan, however if there is evidence that the loan has been misused or if the original application was falsified then the status of liability is likely to change.

Examples of circumstances where a Director may become personally liable include:

  • Applying for the loan fraudulently
  • Falsifying turnover in the original application
  • Paying the Bounce Back Loan to themselves personally
  • Paying off loans with personal guarantees in preference to other borrowings
  • Using the loan funds for purely personal reasons such as a new car

Why you should seek advice if any of these points apply to you

  • The major banks are undertaking new initiatives appointing specialist insolvency practitioners to investigate misappropriated Bounce Back Loans
  • New powers are being given to the Insolvency Service to investigate Directors of companies that have been dissolved as set out in the Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill.
  • Full HMRC investigations are now being undertaken into the use of Bounce Back Loans by companies unable to repay.

For more information on Bounce Back Loans, go here.

Get the advice you need on your BBL.