The Bounce Back Loan scheme was introduced in May 2020 to help smaller businesses hit by the panemic.
The Government guaranteed the loans provided by the banks.
There is widespread speculation that the default rates with these loans will be very high and the Government have put pressure on the banks to take steps to collect these debts prior to relying on the Government guarantee.
Banks have enlisted the services of specialist debt collectors and we know of at least one bank which has engaged with a firm of Insolvency Practitioners to assist with the debt collection process.
Our advice to directors who find themselves in this position is to seek professional advice sooner rather than later.