So not as good as a Bounce back Loan. There’s more due diligence and assessment goes into a CBILs facility, hence that success rate not being as good as under the Bounce Back Loan scheme. I’ve mentioned in previous Bulletins, you’ve got to be really aware if you’ve taken out any of these facilities in 2021, obviously your repayments will kick in.
If you’re looking to borrow money going forward under ordinary loan schemes, the banks are going to be critically looking at this new liability that will kick in in quarter one and quarter two next year; they’re going to factor those new repayments into your cashflow. Also you’ve got to be mindful as well, i f you’ve taken out a Bounce Back Loan or CBILs, then you’re kind of sending a signal that your business is not as strong and that you needed it.
Now I know many businesses that just applied for the loan because it’s such a good interest rate and why wouldn’t you. And certainly it’s there to use to help grow your business. But if you don’t need it, I would critically take a look say month 10 before your repayments kick in as to whether you actually still need it. I f you want to have a clean balance sheet are not impact on your ability to borrow money in the future. Think about paying it back. There are of course no penalties to paying it back early. So the schemes continue to be popular if you haven’t applied and you do need it, g et in there quick, all of these schemes have a finite deadline.
That’s it for another Bulletin and as ever, I hope you enjoyed watching. I f you did, please, don’t forget to give it a like and a share and subscribe to this channel. So that’s it. I look forward to being with you next time. In the meantime, have a safe, profitable, healthy week.