‘Bounce Back’ loans saved plenty of businesses on the brink over the last nine or so months, there’s no doubt about it.
There’s also no doubt about the fact that even with these bounce back loans, some businesses and SME’s were doomed for closure, insolvency and bankruptcy, and they knew it.
Did this stop them applying for the bounce back loans?
Did this stop the Government and the lenders approving the applications?
So, what does all this mean?
It means there’s a hell of a lot of money to be paid back, and inevitably, some of that money is going to be a lot harder to collect than the rest.
A report from the CSA named, ‘Squaring the Circle: Setting the Strategy for UK Business ‘Bounce Back’ Loans Collections,’ has been released, and it makes for very interesting reading. The figures alone are worthy of some attention.
The report claims that up to £6 billion could be reclaimed for the public purse over the next three years if (and it’s a big ‘if’) the Government adopt the correct approach for collecting the debts.
The correct approach has to be by entrusting enforcement companies with the monumental task, rather than by trying to reinvent the wheel. Companies like ours will be ready and raring to support the Government and its partnering lenders in their pursuit of the debts.
The report details how the recoverable debt amounts to more than the annual budget of the NHS, and after a year where we’ve seen the true value of our NHS, this is such an appropriate measure of how serious the recovery of this debt really is.
It puts it all into perspective.
Sadly, as we have covered all along, there are plenty of examples of irresponsible or even fraudulent claims that are only coming to light now, long after the money has been loaned and spent.
The Government will need to utilise the skills, experience and expertise of companies like ours, if anywhere near the total outstanding debt is to be recovered, especially when some estimates reckon that more than half of the total amount lent to UK businesses won’t ever be repaid.
#TeamCES support the CSA’s report, as we know that those in the industry have the capabilities to get this money back, acting in the best interests of every single person in the country.
You can read the CSA’s report in full here: