According to the UK business department, 60% of the emergency Bounce Back Loans are likely to never be paid back. Will this really happen? Where to get reliable and low-cost UK merchant accounts? No worries. Find the answers in the article below.
Bounce Back Loan Scheme (BBLS)
The loans offered under the Bounce Back Loan Scheme (BBLS) aren’t the same as the ones associated with the Coronavirus Business Interruption Loan Scheme. The latter offers larger amounts, without giving 100% state guarantee. Thanks to the BBLS, small companies can receive up to £50.000 over 9 years at preferential rates. These loans are 100% state-guaranteed.
According to Suren Thiru, head of economics at the British Chambers of Commerce (BCC), the government, regulators, as well as banks must enter into cooperation and make sure that this support is available to a larger number of companies so they can overcome today’s financial hindrances.
Bounce Back Loans Could Go Bad: UK Merchant Accounts
The UK government has reported that up to 60% of the BBLS funding are likely to never be paid back. According to the National Audit Office (NAO), taxpayers may lose £26bn because of fraud, organised crime or default, which is a large amount.
The BBLS enables private sector lenders to get a 100% state guarantee on loans with low interest meant for small companies, with underwritten £38bn of credit for 1.3 million companies up to date. What about you? Have you been able to keep your business afloat during this COVID-19-related crisis? Do you need help with reliable and affordable merchant services?
No need to worry. Just find a trustworthy merchant-services provider in the country. You can do this easily by working with a respectable merchant-services comparison specialist in the UK that’s dedicated to offering the safest and cheapest payment-processing services, including UK merchant accounts, without hassle.
Pay attention to whether the comparison expert guarantees the most unbiased review of merchant-services providers at the time of writing.
So, the BBLS aims to ensure small businesses can receive COVID-19 funding without delay. The government finds that 2/3 of the Bounce Back Loans could never be paid back.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of UK merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.