Yesterday, we sent a communication regarding the Bounce Back Loan (BBL). In it we mentioned you can borrow between £2,000-50,000 for up to 6 years and during the first year there will be no
repayment fees within that period. It is also at a favourable interest rate (capped at 2.5%).
More information on this can be found in our guide document here.
Pharma Plus View:
- Our view on this loan is that members need to be mindful that we anticipate that many community pharmacies will experience cash flow issues in June / July 2020 as the impact of what has happened takes hold. The loan is good to have principally to keep
credit lines open with your suppliers and for general cash flow dips.
- We do, however, advise members to consider their circumstances carefully and consult your accountant or financial advisor. Those members with existing loans or debt may find BBL useful to reconcile existing debt or keep as a safeguard for the
future.
- In the first 12 months, there will be no capital or interest payable. These repayments will take place between year two to year six
- Representative example: Loan Value - £50,000 Period – 6 Years First year with no interest or payments = 60 monthly payments of £886.75
We recommend that you apply for this loan and use it when and if you need it. You can return it within the designated period if not required. The loan is probably a time-limited offer (as with the other government time limited financial
initiatives) and so it is better to take it now as it is likely to close and become unavailable in the future.
AS ALWAYS, SPEAK TO YOUR ACCOUNTANT OR FINANCIAL ADVISOR FIRST TO SEE WHAT IS RIGHT FOR YOU.
