Recent statistics published by HM Treasury confirm that £22bn of Bounce-Back Loans have been taken up by 700,000 small businesses across the UK. That is an average loan of approximately £31,000 per business.

As these loans are limited to 25% of business turnover, the average turnover of each business is £124,000.

The terms of these loans are generous. 2.5% fixed interest rate and no repayments due for 12 months. In the first year the Government is picking up the tab for interest and set-up charges and is providing a guarantee to the lenders.

However, these are loans and will need to be repaid out of future years’ earnings.

And they imply that there will be a bounce-back in activity. No doubt many sectors will bounce-back but there will be others more seriously affected and needing to cope with longer-term issues. For example, how long will it take the hospitality and travel industries to recover? Will we ever have the confidence to step on an aircraft again in the certain knowledge that our return will not be frustrated?

If you have taken out a loan presumably you did so after taking these considerations into account? If you did not, it is not too late to consider your planning options. Please call if you need help to do this.