If you took a bounce back loan with Barclays, and are now unable to pay it back, you’ll be wondering what your options are.
Barclays offered bounce back loans (BBLS) under the government approved scheme from 4 May 2020 to 31 March 2021 for businesses financially impacted by Coronavirus.
As per the rules of the scheme, those businesses who secured the funding should now be paying them back. But what happens if you find yourself unable to pay? We’ll explore this subject below and, if you need advice or support, please do get in touch with our licensed experts.
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What Happens if You Can’t Pay Your Barclays Bounce Back Loan?
If you can’t pack the bounce back loan you have a few options.
Pay as You Grow Scheme – This scheme has been designed by the government to alleviate the financial difficulty of repayment. You can extend the loan term from 6-10 years, request a payment holiday of six months, or pay interest only for six months. Apply via your Barclays app if this solution makes sense for you.
Close the Company – If the company can’t pay what it owes, this means you are insolvent. You should confirm this with your accountant or a licensed insolvency practitioner. Closing an insolvent company requires the process of liquidation, which means all corporate debts are written off. As such, your bounce back debts will disappear along with the company itself. This process does require professional assistance though, as you can’t liquidate a company yourself.
If You Don’t Pay Your Barclays Bounce Back Loan
- You should expect request for payment letters
- Interest and penalties on late payment
- Barclays will refer your debt to a debt collection agency or debt purchaser
- Your credit rating will be impacted
- Ultimately, you could face a winding up petition which would force your company into liquidation
