Bounce back loans

[Hilly]

Until banks settle down & realise that the current commodity price trend channels are the new normal, in their eyes the Ukraine conflict has resulted in a riskier lending environment. Add to that there's less dirty money sloshing about in the overnight lending exchanges (the life blood of Britain's big banks) I think they're going to get windy about funding expensive inputs, so if you've made a few quid keep it in a slush fund somewhere & try to maintain your existing facilities.

Carefull where tou keep it with inflation at 10% , much better with some debt on appreciating assets .

 

[D14]

How many used the facility? Apparently £47 billion was lent to 1.5 million business’s despite warnings that it was open to fraud.
17 billion is the estimate of how much will never be repaid thanks to borrowers defaulting.
3.5 -5 billion is believed to have been claimed fraudulently by organised gangs
The government is investing £30 million to try and reclaim some of this money, they are optimistic of getting £6million back
Was it such a goodinvestment?

Used it over 3 business's. Cheapest money you'll ever see and I can't understand why everybody didn't take it up.

 

[Timbo]

Used it over 3 business's. Cheapest money you'll ever see and I can't understand why everybody didn't take it up.

Same. Brought a couple of projects forwards and into action much sooner than I would have been able to otherwise.

 

[Werzle]

Will you get your overdraft back though? That was my fear so I didn’t go for one.

If your business is sound it will not be a problem. My farm business overdraft automatically renewed same as usual no problem whatsoever.

 

[S J H]

If your business is sound it will not be a problem. My farm business overdraft automatically renewed same as usual no problem whatsoever.

It just worried me at the time, as it was the fear of the unknown back then.

 

[Renaultman]

Carefull where tou keep it with inflation at 10% , much better with some debt on appreciating assets .

It's a fine line between having a bit of a rainy day fund albeit reducing due to inflation and overstretching buying appreciating assets with the potential of increasing interest rates too. I've been spending quite hard over the last few years and still am to a certain extent but am going to accept a higher tax bill this year.

 

[Werzle]

It just worried me at the time, as it was the fear of the unknown back then.

Alot of scaremongering went on, mostly on here!

 

[Adeptandy]

Tempted to extend mine to the 10 years, repayments start soon, would free up a bit of cash for fert and glypho investment.
Looking like really cheap borrowing at the moment.