Bounce Back Loans: Double Your Money

If you’ve not got one, and need one, or would like one, Bounce Back loans are very easy to apply for. My online application took less than 10 minutes and the money was in my account 3 days later. Unsecured (100% government backed), no fees, no repayments or interest for the first 12 months, and only 2.5% annual interest for the balance 5 years of the loan - no early repayment penalties. Bounce Back Loans

If you’ve got your loan, and you absolutely need it to survive, use it cautiously and prudently, and please do not read any further. Survival is the name of your game.

Similarly, if you’ve got your loan, and your ‘worst case’ scenario cashflow forecast says that you’ll need the money at some point, put your loan money on deposit, watch the pennies, trade hard, adapt your strategy and tactics where necessary, and keep your cashflow updated weekly. Please read no further. (Interest rates are pretty paltry at the moment. The best I’ve found for business deposits is Redwood Bank 1.2% AER for 35 day notice account.)

It would appear that many people have applied for Bounce Back loans ‘just because they can’, or ‘just in case’. If that’s us, we could put our money on deposit, earn a couple of hundred pounds, and pay the loan back in 12 months’ time. However, I suspect that you didn’t take the risk to start your own business, aiming to earn a return on investment of 1.2%.

If you’ve had ideas in the past, all of a sudden, I just don’t have the spare money, has been taken away as an excuse. Is this really seed capital to invest in a business development opportunity, dressed-up as a loan?

The situation reminds me of an ancient story: The Parable of the Talents, as told in the ‘good news’ writings of tax-collector-turned-disciple, Matthew, and credited to Jesus of Nazareth. It’s a fascinating story with a surprising outcome.

Here’s the synopsis:

A master has 3 servants. To one he gives 5 bags of gold, to the second 2 bags, and to the third 1 bag. He then goes away. Servant one turns 5 bags into 10 bags. Servant two produces 4 bags from his original 2. The third servant buries his 1 bag, for safe keeping.

The master returns and wonders if his 3 servants have made measurable progress in reasonable time (as Jim Rohn would say). He’s absolutely delighted with servants one and two.

This is what happened when the master came to the third servant:

“The master was furious. ‘That’s a terrible way to live! It’s criminal to live cautiously like that! If you knew I was after the best, why did you do less than the least? The least you could have done would have been to invest the sum with the bankers, where at least I would have gotten a little interest. ‘Take the bag of gold and give it to the one who risked the most. And get rid of this “play-it-safe” who won’t go out on a limb. Throw him out into utter darkness.’ Matthew 5:26-30 The Message.

By the way, the ‘master’ in the parable is God. If we have capital, it would appear that even God is looking for a return! As businesspeople, should we be doubling our money in the next 2 years? 12 months? I’m sure we should be generating a return of greater than 1.2%! And I’m pretty sure we’re meant to do it ethically, by serving our fellow man and making their lives better in some small and meaningful way.

It might not be a totally new business venture. Perhaps we’re meant to take some of it and invest it in improving our skills? Or the skills of our team? Perhaps it’s a new marketing campaign? Or new and better equipment? All of which should be carefully thought through investments that will give us a return in increased profits in reasonable time.

Perhaps it’s an investment in a second income stream - one that might counteract the seasonality of our main income stream. Or be countercyclical or recession proof. (Many of us will have taken that lesson from the last 3 months.)

If you’re feeling challenged that you should do something useful and productive with your loan money (only if you don’t need it to survive!), the first step is to schedule some thinking time to start kicking around some ideas and doing some research. Perhaps you want to band together with a couple of other like-minded people and brainstorm together. Thinking doesn’t commit you to anything – the money’s still safe in the bank! But, as many people far wiser than me have said, thoughts become things. The genesis of all ventures, great and small, starts with some dedicated (and scheduled) thinking. Use your thinking talents well!

If you’d like to run any ideas past me, or fancy a brainstorming session, please call or message me on 07931 882555; or email me on [email protected].

Have a great weekend and enjoy the sunshine.

Here’s the full story: Matthew 25:14-30 The Message (MSG)

The Story About Investment

14-18 “It’s also like a man going off on an extended trip. He called his servants together and delegated responsibilities. To one he gave five thousand dollars, to another two thousand, to a third one thousand, depending on their abilities. Then he left. Right off, the first servant went to work and doubled his master’s investment. The second did the same. But the man with the single thousand dug a hole and carefully buried his master’s money.

19-21 “After a long absence, the master of those three servants came back and settled up with them. The one given five thousand dollars showed him how he had doubled his investment. His master commended him: ‘Good work! You did your job well. From now on be my partner.’

22-23 “The servant with the two thousand showed how he also had doubled his master’s investment. His master commended him: ‘Good work! You did your job well. From now on be my partner.’

24-25 “The servant given one thousand said, ‘Master, I know you have high standards and hate careless ways, that you demand the best and make no allowances for error. I was afraid I might disappoint you, so I found a good hiding place and secured your money. Here it is, safe and sound down to the last cent.’

26-27 “The master was furious. ‘That’s a terrible way to live! It’s criminal to live cautiously like that! If you knew I was after the best, why did you do less than the least? The least you could have done would have been to invest the sum with the bankers, where at least I would have gotten a little interest.

28-30 “‘Take the thousand and give it to the one who risked the most. And get rid of this “play-it-safe” who won’t go out on a limb. Throw him out into utter darkness.’