Many businesses across the UK have lost revenue and seen their cashflow disrupted as a result of the Covid-19 outbreak. To help get companies get back on track, the Government has introduced various safety nets. One of these is the Bounce Back Loan scheme (BBLS).
When the BBLS scheme was first introduced, it was impossible to judge how the coronavirus pandemic would spread and the true scale of the help that would be needed. Due to the uncertainty, it was only natural that many previously financially stable and well-established businesses turned to the BBLS for the emergency loans, which offered much-needed financial support.
The Result of BBLS: Key Figures
When it comes to how many BBLS loans have been issued, the figure currently stands at over 1.3 million – and the scheme is still ongoing.
From the total approved lending figure to the prediction of loans that will never be repaid, discover the full picture below.
As you can see, the challenges to lenders are numerous. Not only will lenders have to be sensitive to the circumstances of each business when organising repayments, but there are also likely to be a significant number of BBLS loans that are never repaid: up to 60%. This figure includes loans obtained fraudulently, as well as loans on which the business is forced to default.
How Can Lenders Cope with the BBLS Hangover?
There is no denying that the mountain of BBLS loans represents a major challenge for lenders as we edge towards repayments. So, what advice can we offer to ensure this challenge is tackled in the best and most appropriate way?
In our article, ‘3 Rs of Open Banking for BBLS’, we explore three key factors that lenders should take note of. We also explain how Open Banking is an effective tool to manage repayments and customer relationships in the aftermath of BBLS, while still delivering good customer outcomes.
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Uncover the 3 Rs of Open Banking for BBLS