When the economy will start to bounce back and how quickly this will happen are very much unknown at the moment.
What is certain is that your business will need to stand out from the crowd so that you get the work rather than your competitors, and that many of us will need to adapt our offering to face the ‘new world’ in front of us.
The Government are offering bounce back loans of between £2,000 and £50,000 (up to 25% of your turnover) to help businesses get back on their feet.
It’s lunchtime on Monday, and this week we’ve already had two future clients contact us, wanting to use part of their bounce back loans to buy new websites so that they have a solid foundation when they can reopen.
One company wants to move to online sales in a slightly different market, seizing a trend that they have spotted during lockdown. The other wants to establish themselves locally as experts in their field, whilst publicising the quality of what they offer.
So why are these loans so appealing?
- Most UK-based businesses that have been negatively impacted by COVID-19 are eligible
- They are easy to apply for online (some banks take under 5 minutes)
- They are very fast (one client had his money in 2 days)
- They are interest-free for 12 months, and only 2.5% for the next 5 years, crazy for a commercial loan
- No payments need to be made in the first year
- The government will 100% guarantee the loan
- No setup fees, no early repayment fees
If you wanted to spend say £4,500 + VAT on a custom-built website and marketing, pay nothing upfront and nothing for the first year, then just £96 a month for 5 years.
A smaller £3,000 + VAT custom built website; pay nothing upfront and nothing for the first year then just £64 a month for 5 years.
If you wanted to spend £10,000 + VAT on an eCommerce website and £5,000 on Google AdWords to kick start your business, pay nothing up front, and nothing for a year, then just £302 a month for 5 years.
Even the full £50,000 loan, only has £3,242 of interest over 6 years (averaging £45 interest per month), or interest-free if paid back within 12 months.
Admittedly this isn’t a free website, but it’s unlikely we’ll get such a great opportunity in our lifetimes.
What a great time to revamp your online presence and kick start your marketing, getting your ducks in a row ready for when the country gets closer to normal. Time to make sure that you don’t get eaten by the covid bear.
The government have handed us this opportunity on a plate and it’s time to take advantage of it to stay ahead of the game.
If anyone has any questions about the application process, websites, marketing, or anything else, please get in touch.
We are Webbed Feet, we will get through this.
* Note that any financial decisions should be discussed with your accountant or other professional. All facts and figures above should be double-checked and Webbed Feet UK Ltd accepts no responsibility what-so-ever for any actions taken after reading this article. Importantly you may only be eligible for one bounce back loan, so make sure you borrow enough to cover every eventuality, and not just your website and marketing.
* Details here: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan