Industry experts share their thoughts on the proposed government support scheme.
A panel of industry experts welcomed the UK government’s proposed Bounce Back loan scheme but warned that founders should not see it is an easy option.
“Don’t use this money as an excuse not to make hard decisions is my message to startups,” said John Spindler, CEO of Capital Enterprise, speaking at an Eagle Labs virtual event.
Spindler explained that his investment portfolio included around 50 companies and that most had halved their burn rates.
Juliet Rogan, Barclays Head of High Growth and Entrepreneur Coverage advised a considered approach: “The main thing is to think about how you are going to pay back any sort of loan because you don’t want to get into a situation where you borrow money that you cannot repay.”
Business should consider the full range of government support and grants, she said.
Joe White MBE, Co-chair of GBx, echoed the support for the scheme and highlighted that while loans would be quickly made there was likely to be a subsequent verification process to ensure that all applications had been valid.
“It’s going to be one of those things that flows quickly but there will be an intense audit afterwards. As one person described it: get the money out quickly but keep the receipts.”
The government guaranteed Bounce Back loans will allow businesses to borrow between £2,000 and £50,000. Loans will be interest free for the first 12 months. More information of how to apply is expected soon.
Juliet Rogan discusses more detail of the loans in this video.