Why some businesses are struggling to access bounce back loans?

Businesses which have been negatively impacted by the Covid-19 pandemic have reported challenges in accessing the government’s bounce back loans.

Bounce back loans were made available to small businesses by the Chancellor, so that affected businesses could borrow sums of up to £50,000 over a nine-year period, and at preferential rates. Each loan was 100% backed by public funds and the scheme was extended to the end of November when the chancellor made his September financial statement. They have now been extended once again to 31st January 2021.

However, many business owners have reported that they are struggling to get their hands on the loans, with some banks reportedly not accepting any new customers, some only saying that they will lend to existing customers, and others apparently cherry-picking customers and sending out invitations to apply.

The British Chambers of Commerce (BCC) said that many businesses are facing sustained cash flow difficulties and noted their concern that many firms were unable to access the vital financial lifeline that the government had made available to them – especially if they banked with a non-accredited lender.

The BCC called on the government to work with banks and regulators to ensure that all eligible small businesses could access the full suite of support during the ongoing pandemic.

UK Finance, the banking trade body, said that most applicants had been able to get the finance that they needed quickly via the publicly-backed scheme, which had lent more than £38 billion to over 1.2 million smaller businesses.

The body also pointed to other forms of commercial lending which were available to businesses as well as other grants and forms of support within each local authority. These include discretionary grants for businesses who have so far fallen between the funding cracks but who are affected by the local restrictions.

Customers who do want to apply for a bounce back loan have until the end of January 2021 to do so. Further information about financial support for businesses is also being confirmed in the coming days after the Chancellor increased available funding.

Access to other funding

Firms which need to borrow finance quickly and easily to shore up their businesses can also access rapid flexible loans from Century Business Finance. We offer loans of £10,000 to £150,000 depending on your needs and you can choose a loan term of six months to two years.

There are no upfront fees and no early repayment charges if you do wish to pay back your loan early. Even better, we don’t require any face to face meetings or time consuming paperwork because everything is managed online. Just complete the short online form which takes a few minutes and our team will review your application straight away. From this point, your loan funds can be released to you within 24 hours, so you can move ahead with your business plans without any delay.

Don’t let access to finance hold you back during this challenging time. Apply now for a Century Business Finance loan and shore up your operation in the face of the pandemic challenges. Our friendly team is here to help with any queries that you may have.